Correlation Between NiSource and CT Real
Can any of the company-specific risk be diversified away by investing in both NiSource and CT Real 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 NiSource and CT Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NiSource and CT Real Estate, you can compare the effects of market volatilities on NiSource and CT Real 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 NiSource with a short position of CT Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource and CT Real.
Diversification Opportunities for NiSource and CT Real
Excellent diversification
The 3 months correlation between NiSource and CTRRF is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and CT Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CT Real Estate and NiSource 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 NiSource are associated (or correlated) with CT Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CT Real Estate has no effect on the direction of NiSource i.e., NiSource and CT Real go up and down completely randomly.
Pair Corralation between NiSource and CT Real
Allowing for the 90-day total investment horizon NiSource is expected to generate 0.26 times more return on investment than CT Real. However, NiSource is 3.9 times less risky than CT Real. It trades about 0.51 of its potential returns per unit of risk. CT Real Estate is currently generating about -0.21 per unit of risk. If you would invest 3,416 in NiSource on August 30, 2024 and sell it today you would earn a total of 409.00 from holding NiSource or generate 11.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NiSource vs. CT Real Estate
Performance |
| Timeline |
| NiSource |
| CT Real Estate |
NiSource and CT Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NiSource and CT Real
The main advantage of trading using opposite NiSource and CT Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource position performs unexpectedly, CT Real 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 CT Real will offset losses from the drop in CT Real's long position.| NiSource vs. NewJersey Resources | NiSource vs. Northwest Natural Gas | NiSource vs. UGI Corporation | NiSource vs. Spire Inc |
| CT Real vs. Firm Capital Property | CT Real vs. Smart REIT | CT Real vs. Slate Grocery REIT | CT Real vs. Phillips Edison Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |