Correlation Between Chimerix and NiSource
Can any of the company-specific risk be diversified away by investing in both Chimerix and NiSource 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 Chimerix and NiSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chimerix and NiSource, you can compare the effects of market volatilities on Chimerix and NiSource 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 Chimerix with a short position of NiSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chimerix and NiSource.
Diversification Opportunities for Chimerix and NiSource
Weak diversification
The 3 months correlation between Chimerix and NiSource is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Chimerix and NiSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NiSource and Chimerix 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 Chimerix are associated (or correlated) with NiSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NiSource has no effect on the direction of Chimerix i.e., Chimerix and NiSource go up and down completely randomly.
Pair Corralation between Chimerix and NiSource
Given the investment horizon of 90 days Chimerix is expected to generate 16.24 times more return on investment than NiSource. However, Chimerix is 16.24 times more volatile than NiSource. It trades about 0.09 of its potential returns per unit of risk. NiSource is currently generating about 0.2 per unit of risk. If you would invest 97.00 in Chimerix on November 28, 2024 and sell it today you would earn a total of 370.00 from holding Chimerix or generate 381.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chimerix vs. NiSource
Performance |
| Timeline |
| Chimerix |
| NiSource |
Chimerix and NiSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chimerix and NiSource
The main advantage of trading using opposite Chimerix and NiSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chimerix position performs unexpectedly, NiSource 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 NiSource will offset losses from the drop in NiSource's long position.| Chimerix vs. Assembly Biosciences | Chimerix vs. Spero Therapeutics | Chimerix vs. Achilles Therapeutics PLC | Chimerix vs. Instil Bio |
| NiSource vs. NewJersey Resources | NiSource vs. Northwest Natural Gas | NiSource vs. UGI Corporation | NiSource vs. Spire Inc |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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