Correlation Between Nike and Goodyear
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nike Inc and Goodyear Tire Rubber, you can compare the effects of market volatilities on Nike and Goodyear 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 Goodyear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nike and Goodyear.
Diversification Opportunities for Nike and Goodyear
Average diversification
The 3 months correlation between Nike and Goodyear is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nike Inc and Goodyear Tire Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodyear Tire Rubber 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 Goodyear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodyear Tire Rubber has no effect on the direction of Nike i.e., Nike and Goodyear go up and down completely randomly.
Pair Corralation between Nike and Goodyear
Considering the 90-day investment horizon Nike Inc is expected to under-perform the Goodyear. In addition to that, Nike is 2.93 times more volatile than Goodyear Tire Rubber. It trades about -0.02 of its total potential returns per unit of risk. Goodyear Tire Rubber is currently generating about 0.01 per unit of volatility. If you would invest 9,750 in Goodyear Tire Rubber on September 3, 2024 and sell it today you would earn a total of 60.00 from holding Goodyear Tire Rubber or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nike Inc vs. Goodyear Tire Rubber
Performance |
| Timeline |
| Nike Inc |
| Goodyear Tire Rubber |
Nike and Goodyear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nike and Goodyear
The main advantage of trading using opposite Nike and Goodyear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nike position performs unexpectedly, Goodyear 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 Goodyear will offset losses from the drop in Goodyear's long position.The idea behind Nike Inc and Goodyear Tire Rubber 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.| Goodyear vs. Boot Barn Holdings | Goodyear vs. Nike Inc | Goodyear vs. American Eagle Outfitters | Goodyear vs. The Joint 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |