How do you get Bill from William, Chuck from Charles, Bob from Robert?
dictionary.com defines nickname as:
Quote:
A descriptive name added to or replacing the actual name of a person, place, or thing.
A familiar or shortened form of a proper name.
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I think the key words are 'familiar' and 'replace'.
Nicknames are replacements for real name that, though not always based upon the actual name, become famliar enough to stick.