Correlation Between CBOE Low and Nike
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By analyzing existing cross correlation between CBOE Low Volatility and Nike Inc, you can compare the effects of market volatilities on CBOE Low and Nike and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CBOE Low with a short position of Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBOE Low and Nike.
Diversification Opportunities for CBOE Low and Nike
Very good diversification
The 3 months correlation between CBOE and Nike is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CBOE Low Volatility and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike Inc and CBOE Low is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CBOE Low Volatility are associated (or correlated) with Nike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nike Inc has no effect on the direction of CBOE Low i.e., CBOE Low and Nike go up and down completely randomly.
Pair Corralation between CBOE Low and Nike
Assuming the 90 days trading horizon CBOE Low is expected to generate 3.74 times less return on investment than Nike. But when comparing it to its historical volatility, CBOE Low Volatility is 4.36 times less risky than Nike. It trades about 0.12 of its potential returns per unit of risk. Nike Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 7,621 in Nike Inc on September 12, 2024 and sell it today you would earn a total of 248.00 from holding Nike Inc or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBOE Low Volatility vs. Nike Inc
Performance |
| Timeline |
CBOE Low and Nike Volatility Contrast
Predicted Return Density |
| Returns |
CBOE Low Volatility
Pair trading matchups for CBOE Low
Nike Inc
Pair trading matchups for Nike
Pair Trading with CBOE Low and Nike
The main advantage of trading using opposite CBOE Low and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBOE Low position performs unexpectedly, Nike can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nike will offset losses from the drop in Nike's long position.| CBOE Low vs. Avient Corp | CBOE Low vs. Reservoir Media | CBOE Low vs. Luxfer Holdings PLC | CBOE Low vs. RCS MediaGroup SpA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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