Baby Naming

Disclaimer: I'm really sorry if this isn't the right forum to ask this question!

I am Christian and my husband is Ashkenazi Reform. We are expecting a baby this spring and have agreed that the child will be raised Jewish. We are talking about names and have hit an impasse. I would like to honor my (living) sister, Eleanor. My sister has always exclusively gone by Ellie. My husband has agreed that we can use Eleanor for a middle name, which I am fine with. That said, I was hoping she could go by Nora, another nickname of Eleanor, but different from my sister's. My husband is not so sure about this. Name logistics aside (going by a nickname of the middle name will present potential problems), is this too in violation of the Ashkenazi tradition of not naming a child after a living relative?

Thanks in advance!