Correlation Between Nike and Cetus Capital
Can any of the company-specific risk be diversified away by investing in both Nike and Cetus Capital 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 Cetus Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nike Inc and Cetus Capital Acquisition, you can compare the effects of market volatilities on Nike and Cetus Capital 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 Cetus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nike and Cetus Capital.
Diversification Opportunities for Nike and Cetus Capital
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nike and Cetus is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nike Inc and Cetus Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cetus Capital Acquisition 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 are associated (or correlated) with Cetus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cetus Capital Acquisition has no effect on the direction of Nike i.e., Nike and Cetus Capital go up and down completely randomly.
Pair Corralation between Nike and Cetus Capital
If you would invest 7,627 in Nike Inc on September 13, 2024 and sell it today you would earn a total of 258.00 from holding Nike Inc or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Nike Inc vs. Cetus Capital Acquisition
Performance |
| Timeline |
| Nike Inc |
| Cetus Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nike and Cetus Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nike and Cetus Capital
The main advantage of trading using opposite Nike and Cetus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nike position performs unexpectedly, Cetus Capital 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 Cetus Capital will offset losses from the drop in Cetus Capital's long position.The idea behind Nike Inc and Cetus Capital Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cetus Capital vs. Empresa Distribuidora y | Cetus Capital vs. Pinterest | Cetus Capital vs. Kinetik Holdings | Cetus Capital vs. BCE Inc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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