Correlation Between Dow Jones and NiSource Unit
Can any of the company-specific risk be diversified away by investing in both Dow Jones and NiSource Unit 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 Dow Jones and NiSource Unit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and NiSource Unit, you can compare the effects of market volatilities on Dow Jones and NiSource Unit 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 Dow Jones with a short position of NiSource Unit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and NiSource Unit.
Diversification Opportunities for Dow Jones and NiSource Unit
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dow and NiSource is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and NiSource Unit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NiSource Unit and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with NiSource Unit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NiSource Unit has no effect on the direction of Dow Jones i.e., Dow Jones and NiSource Unit go up and down completely randomly.
Pair Corralation between Dow Jones and NiSource Unit
If you would invest (100.00) in NiSource Unit on November 28, 2024 and sell it today you would earn a total of 100.00 from holding NiSource Unit or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. NiSource Unit
Performance |
| Timeline |
Dow Jones and NiSource Unit Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Dow Jones and NiSource Unit
The main advantage of trading using opposite Dow Jones and NiSource Unit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, NiSource Unit 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 Unit will offset losses from the drop in NiSource Unit's long position.| Dow Jones vs. Gladstone Investment | Dow Jones vs. BW Offshore Limited | Dow Jones vs. Fidus Investment Corp | Dow Jones vs. Aperture Health |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |