Correlation Between Nike and KINDER
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By analyzing existing cross correlation between Nike Inc and KINDER MORGAN INC, you can compare the effects of market volatilities on Nike and KINDER 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 KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nike and KINDER.
Diversification Opportunities for Nike and KINDER
Weak diversification
The 3 months correlation between Nike and KINDER is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Nike Inc and KINDER MORGAN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN INC 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 KINDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINDER MORGAN INC has no effect on the direction of Nike i.e., Nike and KINDER go up and down completely randomly.
Pair Corralation between Nike and KINDER
Considering the 90-day investment horizon Nike Inc is expected to generate 0.72 times more return on investment than KINDER. However, Nike Inc is 1.39 times less risky than KINDER. It trades about 0.08 of its potential returns per unit of risk. KINDER MORGAN INC is currently generating about -0.1 per unit of risk. 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 | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Nike Inc vs. KINDER MORGAN INC
Performance |
| Timeline |
| Nike Inc |
| KINDER MORGAN INC |
Nike and KINDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nike and KINDER
The main advantage of trading using opposite Nike and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nike position performs unexpectedly, KINDER 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 KINDER will offset losses from the drop in KINDER's long position.The idea behind Nike Inc and KINDER MORGAN INC 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.| KINDER vs. Ralph Lauren Corp | KINDER vs. Burlington Stores | KINDER vs. SunLink Health Systems | KINDER 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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