Correlation Between Gabelli Utilities and NiSource
Can any of the company-specific risk be diversified away by investing in both Gabelli Utilities 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 Gabelli Utilities and NiSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Utilities and NiSource, you can compare the effects of market volatilities on Gabelli Utilities 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 Gabelli Utilities with a short position of NiSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Utilities and NiSource.
Diversification Opportunities for Gabelli Utilities and NiSource
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gabelli and NiSource is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Utilities and NiSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NiSource and Gabelli Utilities 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 The Gabelli Utilities 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 Gabelli Utilities i.e., Gabelli Utilities and NiSource go up and down completely randomly.
Pair Corralation between Gabelli Utilities and NiSource
If you would invest 3,516 in NiSource on September 1, 2024 and sell it today you would earn a total of 293.00 from holding NiSource or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Utilities vs. NiSource
Performance |
| Timeline |
| Gabelli Utilities |
| NiSource |
Gabelli Utilities and NiSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Utilities and NiSource
The main advantage of trading using opposite Gabelli Utilities and NiSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Utilities 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.| Gabelli Utilities vs. Dominion Energy | Gabelli Utilities vs. Atlantica Sustainable Infrastructure | Gabelli Utilities vs. Consolidated Edison | Gabelli Utilities vs. Eversource Energy |
| NiSource vs. NorthWestern | NiSource vs. Avista | NiSource vs. Otter Tail | NiSource vs. Companhia Paranaense de |
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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