Correlation Between Nike and Doubledown Interactive
Can any of the company-specific risk be diversified away by investing in both Nike and Doubledown Interactive 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 Doubledown Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nike Inc and Doubledown Interactive Co, you can compare the effects of market volatilities on Nike and Doubledown Interactive 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 Doubledown Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nike and Doubledown Interactive.
Diversification Opportunities for Nike and Doubledown Interactive
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nike and Doubledown is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nike Inc and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive 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 Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of Nike i.e., Nike and Doubledown Interactive go up and down completely randomly.
Pair Corralation between Nike and Doubledown Interactive
Considering the 90-day investment horizon Nike Inc is expected to generate 1.05 times more return on investment than Doubledown Interactive. However, Nike is 1.05 times more volatile than Doubledown Interactive Co. It trades about 0.15 of its potential returns per unit of risk. Doubledown Interactive Co is currently generating about 0.07 per unit of risk. If you would invest 7,558 in Nike Inc on November 28, 2024 and sell it today you would earn a total of 614.00 from holding Nike Inc or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nike Inc vs. Doubledown Interactive Co
Performance |
| Timeline |
| Nike Inc |
| Doubledown Interactive |
Nike and Doubledown Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nike and Doubledown Interactive
The main advantage of trading using opposite Nike and Doubledown Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nike position performs unexpectedly, Doubledown Interactive 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 Doubledown Interactive will offset losses from the drop in Doubledown Interactive's long position.The idea behind Nike Inc and Doubledown Interactive Co 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.| Doubledown Interactive vs. Playtika Holding Corp | Doubledown Interactive vs. SohuCom | Doubledown Interactive vs. Playstudios | Doubledown Interactive vs. GDEV 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |