Correlation Between ALBERTSONS and Nike
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By analyzing existing cross correlation between ALBERTSONS INC 75 and Nike Inc, you can compare the effects of market volatilities on ALBERTSONS 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 ALBERTSONS with a short position of Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBERTSONS and Nike.
Diversification Opportunities for ALBERTSONS and Nike
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ALBERTSONS and Nike is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding ALBERTSONS INC 75 and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike Inc and ALBERTSONS 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 ALBERTSONS INC 75 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 ALBERTSONS i.e., ALBERTSONS and Nike go up and down completely randomly.
Pair Corralation between ALBERTSONS and Nike
Assuming the 90 days trading horizon ALBERTSONS INC 75 is expected to generate 27.39 times more return on investment than Nike. However, ALBERTSONS is 27.39 times more volatile than Nike Inc. It trades about 0.05 of its potential returns per unit of risk. Nike Inc is currently generating about -0.03 per unit of risk. If you would invest 10,275 in ALBERTSONS INC 75 on September 14, 2024 and sell it today you would lose (73.00) from holding ALBERTSONS INC 75 or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 77.17% |
| Values | Daily Returns |
ALBERTSONS INC 75 vs. Nike Inc
Performance |
| Timeline |
| ALBERTSONS INC 75 |
| Nike Inc |
ALBERTSONS and Nike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBERTSONS and Nike
The main advantage of trading using opposite ALBERTSONS and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBERTSONS 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.| ALBERTSONS vs. Nike Inc | ALBERTSONS vs. Acme United | ALBERTSONS vs. Vera Bradley | ALBERTSONS vs. Edgewell Personal Care |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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