Correlation Between NIKE and Artis Real
Can any of the company-specific risk be diversified away by investing in both NIKE and Artis Real 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 NIKE and Artis Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NIKE Inc CDR and Artis Real Estate, you can compare the effects of market volatilities on NIKE and Artis Real 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 NIKE with a short position of Artis Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIKE and Artis Real.
Diversification Opportunities for NIKE and Artis Real
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NIKE and Artis is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding NIKE Inc CDR and Artis Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artis Real Estate and NIKE 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 NIKE Inc CDR are associated (or correlated) with Artis Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artis Real Estate has no effect on the direction of NIKE i.e., NIKE and Artis Real go up and down completely randomly.
Pair Corralation between NIKE and Artis Real
Assuming the 90 days trading horizon NIKE Inc CDR is expected to generate 1.36 times more return on investment than Artis Real. However, NIKE is 1.36 times more volatile than Artis Real Estate. It trades about 0.15 of its potential returns per unit of risk. Artis Real Estate is currently generating about 0.11 per unit of risk. If you would invest 1,362 in NIKE Inc CDR on November 4, 2024 and sell it today you would earn a total of 61.00 from holding NIKE Inc CDR or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIKE Inc CDR vs. Artis Real Estate
Performance |
| Timeline |
| NIKE Inc CDR |
| Artis Real Estate |
NIKE and Artis Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIKE and Artis Real
The main advantage of trading using opposite NIKE and Artis Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIKE position performs unexpectedly, Artis Real 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 Artis Real will offset losses from the drop in Artis Real's long position.| NIKE vs. Globex Mining Enterprises | NIKE vs. Leading Edge Materials | NIKE vs. Cogeco Communications | NIKE vs. Doman Building Materials |
| Artis Real vs. Dream Office Real | Artis Real vs. Crombie Real Estate | Artis Real vs. Boardwalk Real Estate | Artis Real vs. Allied Properties Real |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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