Correlation Analysis Between Nike and Foot Locker

This module allows you to analyze existing cross correlation between Nike and Foot Locker. You can compare the effects of market volatilities on Nike and Foot Locker 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 Foot Locker. See also your portfolio center. Please also check ongoing floating volatility patterns of Nike and Foot Locker.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Nike  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Nike are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. In spite of rather sound fundamental drivers, Nike is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders.
Foot Locker  
00

Risk-Adjusted Performance

Over the last 30 days Foot Locker has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, Foot Locker is not utilizing all of its potentials. The new stock price chaos, may contribute to medium term losses for the stakeholders.

Nike and Foot Locker Volatility Contrast

 Predicted Return Density 
      Returns 

Nike  vs.  Foot Locker Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Nike is expected to generate 0.44 times more return on investment than Foot Locker. However, Nike is 2.26 times less risky than Foot Locker. It trades about 0.04 of its potential returns per unit of risk. Foot Locker is currently generating about 0.0 per unit of risk. If you would invest  8,502  in Nike on August 19, 2019 and sell it today you would earn a total of  257.00  from holding Nike or generate 3.02% return on investment over 30 days.

Pair Corralation between Nike and Foot Locker

0.98
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Nike and Foot Locker

Nike diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Nike and Foot Locker Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Foot Locker 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 are associated (or correlated) with Foot Locker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foot Locker has no effect on the direction of Nike i.e. Nike and Foot Locker go up and down completely randomly.
See also your portfolio center. Please also try Idea Breakdown module to analyze constituents of all macroaxis ideas. macroaxis investment ideas are predefined, sector-focused investing themes.


 
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