Correlation Between Nampak and Nike
Can any of the company-specific risk be diversified away by investing in both Nampak and Nike 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 Nampak and Nike into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nampak and Nike Inc, you can compare the effects of market volatilities on Nampak and Nike 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 Nampak with a short position of Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nampak and Nike.
Diversification Opportunities for Nampak and Nike
Excellent diversification
The 3 months correlation between Nampak and Nike is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Nampak and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike Inc and Nampak 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 Nampak are associated (or correlated) with Nike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nike Inc has no effect on the direction of Nampak i.e., Nampak and Nike go up and down completely randomly.
Pair Corralation between Nampak and Nike
If you would invest 7,621 in Nike Inc on September 12, 2024 and sell it today you would earn a total of 248.00 from holding Nike Inc or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Nampak vs. Nike Inc
Performance |
| Timeline |
| Nampak |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nike Inc |
Nampak and Nike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nampak and Nike
The main advantage of trading using opposite Nampak and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nampak position performs unexpectedly, Nike 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 Nike will offset losses from the drop in Nike's long position.| Nampak vs. Nike Inc | Nampak vs. The Gap, | Nampak vs. Hooker Furniture | Nampak vs. Haverty Furniture Companies |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |