Correlation Between Nike and NWIDE
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By analyzing existing cross correlation between Nike Inc and NWIDE 4 14 SEP 26, you can compare the effects of market volatilities on Nike and NWIDE 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 NWIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nike and NWIDE.
Diversification Opportunities for Nike and NWIDE
Very good diversification
The 3 months correlation between Nike and NWIDE is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Nike Inc and NWIDE 4 14 SEP 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NWIDE 4 14 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 NWIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NWIDE 4 14 has no effect on the direction of Nike i.e., Nike and NWIDE go up and down completely randomly.
Pair Corralation between Nike and NWIDE
Considering the 90-day investment horizon Nike Inc is expected to under-perform the NWIDE. In addition to that, Nike is 2.54 times more volatile than NWIDE 4 14 SEP 26. It trades about -0.03 of its total potential returns per unit of risk. NWIDE 4 14 SEP 26 is currently generating about 0.02 per unit of volatility. If you would invest 9,304 in NWIDE 4 14 SEP 26 on September 12, 2024 and sell it today you would earn a total of 58.00 from holding NWIDE 4 14 SEP 26 or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 20.54% |
| Values | Daily Returns |
Nike Inc vs. NWIDE 4 14 SEP 26
Performance |
| Timeline |
| Nike Inc |
| NWIDE 4 14 |
Nike and NWIDE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nike and NWIDE
The main advantage of trading using opposite Nike and NWIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nike position performs unexpectedly, NWIDE 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 NWIDE will offset losses from the drop in NWIDE's long position.The idea behind Nike Inc and NWIDE 4 14 SEP 26 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.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 Stocks Directory module to find actively traded stocks across global markets.
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