Correlation Between TANGER and Nike
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By analyzing existing cross correlation between TANGER PPTYS LTD and Nike Inc, you can compare the effects of market volatilities on TANGER 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 TANGER with a short position of Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of TANGER and Nike.
Diversification Opportunities for TANGER and Nike
Weak diversification
The 3 months correlation between TANGER and Nike is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding TANGER PPTYS LTD and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike Inc and TANGER 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 TANGER PPTYS LTD 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 TANGER i.e., TANGER and Nike go up and down completely randomly.
Pair Corralation between TANGER and Nike
Assuming the 90 days trading horizon TANGER PPTYS LTD is expected to generate 45.51 times more return on investment than Nike. However, TANGER is 45.51 times more volatile than Nike Inc. It trades about 0.08 of its potential returns per unit of risk. Nike Inc is currently generating about -0.02 per unit of risk. If you would invest 9,355 in TANGER PPTYS LTD on September 3, 2024 and sell it today you would earn a total of 22.00 from holding TANGER PPTYS LTD or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 51.11% |
| Values | Daily Returns |
TANGER PPTYS LTD vs. Nike Inc
Performance |
| Timeline |
| TANGER PPTYS LTD |
| Nike Inc |
TANGER and Nike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TANGER and Nike
The main advantage of trading using opposite TANGER and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TANGER 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.| TANGER vs. Nike Inc | TANGER vs. Mangazeya Mining | TANGER vs. Tandy Leather Factory | TANGER vs. American Eagle Outfitters |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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