Correlation Between Nicox SA and Nike
Can any of the company-specific risk be diversified away by investing in both Nicox SA and Nike at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nicox SA and Nike into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicox SA and Nike Inc, you can compare the effects of market volatilities on Nicox SA 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 Nicox SA with a short position of Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicox SA and Nike.
Diversification Opportunities for Nicox SA and Nike
Pay attention - limited upside
The 3 months correlation between Nicox and Nike is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nicox SA and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike Inc and Nicox SA 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 Nicox SA 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 Nicox SA i.e., Nicox SA and Nike go up and down completely randomly.
Pair Corralation between Nicox SA and Nike
Assuming the 90 days horizon Nicox SA is expected to generate 1.01 times more return on investment than Nike. However, Nicox SA is 1.01 times more volatile than Nike Inc. It trades about -0.07 of its potential returns per unit of risk. Nike Inc is currently generating about -0.07 per unit of risk. If you would invest 64.00 in Nicox SA on September 14, 2024 and sell it today you would lose (20.00) from holding Nicox SA or give up 31.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 82.73% |
| Values | Daily Returns |
Nicox SA vs. Nike Inc
Performance |
| Timeline |
| Nicox SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nike Inc |
Nicox SA and Nike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicox SA and Nike
The main advantage of trading using opposite Nicox SA and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicox SA 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.| Nicox SA vs. Pinterest | Nicox SA vs. Summit Materials | Nicox SA vs. Aerofoam Metals | Nicox SA vs. Blue Moon Metals |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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