Correlation Between Nike and MMA Offshore
Can any of the company-specific risk be diversified away by investing in both Nike and MMA Offshore 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 MMA Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nike Inc and MMA Offshore Limited, you can compare the effects of market volatilities on Nike and MMA Offshore 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 MMA Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nike and MMA Offshore.
Diversification Opportunities for Nike and MMA Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nike and MMA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nike Inc and MMA Offshore Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMA Offshore Limited 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 MMA Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMA Offshore Limited has no effect on the direction of Nike i.e., Nike and MMA Offshore go up and down completely randomly.
Pair Corralation between Nike and MMA Offshore
If you would invest 7,680 in Nike Inc on September 5, 2024 and sell it today you would earn a total of 206.00 from holding Nike Inc or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Nike Inc vs. MMA Offshore Limited
Performance |
| Timeline |
| Nike Inc |
| MMA Offshore Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nike and MMA Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nike and MMA Offshore
The main advantage of trading using opposite Nike and MMA Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nike position performs unexpectedly, MMA Offshore 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 MMA Offshore will offset losses from the drop in MMA Offshore's long position.The idea behind Nike Inc and MMA Offshore Limited 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.| MMA Offshore vs. Bausch Lomb Corp | MMA Offshore vs. Eastern Co | MMA Offshore vs. HNI Corp | MMA Offshore vs. Nike 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |