Correlation Between DTE Energy and NiSource Unit
Can any of the company-specific risk be diversified away by investing in both DTE Energy 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 DTE Energy and NiSource Unit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DTE Energy Co and NiSource Unit, you can compare the effects of market volatilities on DTE Energy 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 DTE Energy with a short position of NiSource Unit. Check out your portfolio center. Please also check ongoing floating volatility patterns of DTE Energy and NiSource Unit.
Diversification Opportunities for DTE Energy and NiSource Unit
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DTE and NiSource is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding DTE Energy Co and NiSource Unit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NiSource Unit and DTE Energy 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 DTE Energy Co 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 DTE Energy i.e., DTE Energy and NiSource Unit go up and down completely randomly.
Pair Corralation between DTE Energy and NiSource Unit
If you would invest 10,307 in NiSource Unit on August 30, 2024 and sell it today you would earn a total of 0.00 from holding NiSource Unit or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
DTE Energy Co vs. NiSource Unit
Performance |
| Timeline |
| DTE Energy |
| NiSource Unit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
DTE Energy and NiSource Unit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DTE Energy and NiSource Unit
The main advantage of trading using opposite DTE Energy and NiSource Unit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DTE Energy 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.| DTE Energy vs. Southern Co | DTE Energy vs. Duke Energy Corp | DTE Energy vs. Georgia Power Co | DTE Energy vs. Entergy Arkansas LLC |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |