Correlation Between NiSource and Fuquan Capital
Can any of the company-specific risk be diversified away by investing in both NiSource and Fuquan Capital 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 Fuquan Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NiSource and Fuquan Capital Management, you can compare the effects of market volatilities on NiSource and Fuquan Capital 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 Fuquan Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource and Fuquan Capital.
Diversification Opportunities for NiSource and Fuquan Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NiSource and Fuquan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and Fuquan Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuquan Capital Management 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 Fuquan Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuquan Capital Management has no effect on the direction of NiSource i.e., NiSource and Fuquan Capital go up and down completely randomly.
Pair Corralation between NiSource and Fuquan Capital
If you would invest 2,588 in NiSource on August 31, 2024 and sell it today you would earn a total of 1,221 from holding NiSource or generate 47.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
NiSource vs. Fuquan Capital Management
Performance |
| Timeline |
| NiSource |
| Fuquan Capital Management |
NiSource and Fuquan Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NiSource and Fuquan Capital
The main advantage of trading using opposite NiSource and Fuquan Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource position performs unexpectedly, Fuquan Capital 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 Fuquan Capital will offset losses from the drop in Fuquan Capital's long position.| NiSource vs. NewJersey Resources | NiSource vs. Northwest Natural Gas | NiSource vs. UGI Corporation | NiSource vs. Spire Inc |
| Fuquan Capital vs. Century Aluminum | Fuquan Capital vs. Ziff Davis | Fuquan Capital vs. Summit Environmental | Fuquan Capital vs. Porvair plc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |