Correlation Between Mayfair Gold and NiSource
Can any of the company-specific risk be diversified away by investing in both Mayfair Gold 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 Mayfair Gold and NiSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mayfair Gold Corp and NiSource, you can compare the effects of market volatilities on Mayfair Gold 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 Mayfair Gold with a short position of NiSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayfair Gold and NiSource.
Diversification Opportunities for Mayfair Gold and NiSource
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mayfair and NiSource is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Mayfair Gold Corp and NiSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NiSource and Mayfair Gold 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 Mayfair Gold Corp 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 Mayfair Gold i.e., Mayfair Gold and NiSource go up and down completely randomly.
Pair Corralation between Mayfair Gold and NiSource
Assuming the 90 days horizon Mayfair Gold Corp is expected to under-perform the NiSource. In addition to that, Mayfair Gold is 2.48 times more volatile than NiSource. It trades about -0.34 of its total potential returns per unit of risk. NiSource is currently generating about 0.52 per unit of volatility. If you would invest 3,474 in NiSource on September 3, 2024 and sell it today you would earn a total of 335.00 from holding NiSource or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mayfair Gold Corp vs. NiSource
Performance |
| Timeline |
| Mayfair Gold Corp |
| NiSource |
Mayfair Gold and NiSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mayfair Gold and NiSource
The main advantage of trading using opposite Mayfair Gold and NiSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayfair Gold 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.| Mayfair Gold vs. Agnico Eagle Mines | Mayfair Gold vs. B2Gold Corp | Mayfair Gold vs. Pan American Silver | Mayfair Gold vs. Gold Fields Ltd |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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