Correlation Between NiSource and Illumin Holdings
Can any of the company-specific risk be diversified away by investing in both NiSource and Illumin Holdings 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 Illumin Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NiSource and illumin Holdings, you can compare the effects of market volatilities on NiSource and Illumin Holdings 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 Illumin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource and Illumin Holdings.
Diversification Opportunities for NiSource and Illumin Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NiSource and Illumin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and illumin Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on illumin Holdings 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 Illumin Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of illumin Holdings has no effect on the direction of NiSource i.e., NiSource and Illumin Holdings go up and down completely randomly.
Pair Corralation between NiSource and Illumin Holdings
If you would invest 3,595 in NiSource on September 13, 2024 and sell it today you would earn a total of 61.50 from holding NiSource or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
NiSource vs. illumin Holdings
Performance |
| Timeline |
| NiSource |
| illumin Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NiSource and Illumin Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NiSource and Illumin Holdings
The main advantage of trading using opposite NiSource and Illumin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource position performs unexpectedly, Illumin Holdings 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 Illumin Holdings will offset losses from the drop in Illumin Holdings' long position.| NiSource vs. NewJersey Resources | NiSource vs. Northwest Natural Gas | NiSource vs. Spire Inc | NiSource vs. Chesapeake Utilities |
| Illumin Holdings vs. NETGEAR | Illumin Holdings vs. Zedge Inc | Illumin Holdings vs. Park Ohio Holdings | Illumin Holdings vs. Getty Images Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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