Correlation Between Nike and Ssga High
Can any of the company-specific risk be diversified away by investing in both Nike and Ssga High 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 Nike and Ssga High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nike Inc and Ssga High Yield, you can compare the effects of market volatilities on Nike and Ssga High 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 Ssga High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nike and Ssga High.
Diversification Opportunities for Nike and Ssga High
Pay attention - limited upside
The 3 months correlation between Nike and Ssga is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nike Inc and Ssga High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga High Yield 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 Inc are associated (or correlated) with Ssga High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga High Yield has no effect on the direction of Nike i.e., Nike and Ssga High go up and down completely randomly.
Pair Corralation between Nike and Ssga High
If you would invest 9,258 in Nike Inc on January 26, 2024 and sell it today you would earn a total of 206.00 from holding Nike Inc or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Nike Inc vs. Ssga High Yield
Performance |
| Timeline |
| Nike Inc |
| Ssga High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nike and Ssga High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nike and Ssga High
The main advantage of trading using opposite Nike and Ssga High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nike position performs unexpectedly, Ssga High 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 Ssga High will offset losses from the drop in Ssga High's long position.The idea behind Nike Inc and Ssga High Yield pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ssga High vs. Quantitative Longshort Equity | Ssga High vs. Morgan Stanley Ultra Short | Ssga High vs. T Rowe Price | Ssga High vs. Semper Short Duration |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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