Correlation Between 824348BP0 and Nike
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By analyzing existing cross correlation between SHW 29 15 MAR 52 and Nike Inc, you can compare the effects of market volatilities on 824348BP0 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 824348BP0 with a short position of Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of 824348BP0 and Nike.
Diversification Opportunities for 824348BP0 and Nike
Very weak diversification
The 3 months correlation between 824348BP0 and Nike is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding SHW 29 15 MAR 52 and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike Inc and 824348BP0 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 SHW 29 15 MAR 52 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 824348BP0 i.e., 824348BP0 and Nike go up and down completely randomly.
Pair Corralation between 824348BP0 and Nike
Assuming the 90 days trading horizon SHW 29 15 MAR 52 is expected to generate 0.87 times more return on investment than Nike. However, SHW 29 15 MAR 52 is 1.15 times less risky than Nike. It trades about 0.02 of its potential returns per unit of risk. Nike Inc is currently generating about -0.03 per unit of risk. If you would invest 6,474 in SHW 29 15 MAR 52 on September 12, 2024 and sell it today you would earn a total of 454.00 from holding SHW 29 15 MAR 52 or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 74.15% |
| Values | Daily Returns |
SHW 29 15 MAR 52 vs. Nike Inc
Performance |
| Timeline |
| SHW 29 15 |
| Nike Inc |
824348BP0 and Nike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 824348BP0 and Nike
The main advantage of trading using opposite 824348BP0 and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 824348BP0 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.| 824348BP0 vs. Nike Inc | 824348BP0 vs. Burlington Stores | 824348BP0 vs. PVH Corp | 824348BP0 vs. Kontoor Brands |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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