Correlation Between NIKE and E Split
Can any of the company-specific risk be diversified away by investing in both NIKE and E Split 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 E Split 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 E Split Corp, you can compare the effects of market volatilities on NIKE and E Split 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 E Split. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIKE and E Split.
Diversification Opportunities for NIKE and E Split
Excellent diversification
The 3 months correlation between NIKE and ENS-PA is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding NIKE Inc CDR and E Split Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Split Corp 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 E Split. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Split Corp has no effect on the direction of NIKE i.e., NIKE and E Split go up and down completely randomly.
Pair Corralation between NIKE and E Split
Assuming the 90 days trading horizon NIKE Inc CDR is expected to generate 2.41 times more return on investment than E Split. However, NIKE is 2.41 times more volatile than E Split Corp. It trades about 0.07 of its potential returns per unit of risk. E Split Corp is currently generating about -0.03 per unit of risk. If you would invest 1,316 in NIKE Inc CDR on November 18, 2024 and sell it today you would earn a total of 37.00 from holding NIKE Inc CDR or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIKE Inc CDR vs. E Split Corp
Performance |
| Timeline |
| NIKE Inc CDR |
| E Split Corp |
NIKE and E Split Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIKE and E Split
The main advantage of trading using opposite NIKE and E Split positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIKE position performs unexpectedly, E Split 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 E Split will offset losses from the drop in E Split's long position.| NIKE vs. Sangoma Technologies Corp | NIKE vs. DIRTT Environmental Solutions | NIKE vs. Jamieson Wellness | NIKE vs. Bausch Health Companies |
| E Split vs. CVW CleanTech | E Split vs. TGS Esports | E Split vs. Canlan Ice Sports | E Split vs. CI Financial Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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