Correlation Between NiSource and Lep Technology
Can any of the company-specific risk be diversified away by investing in both NiSource and Lep Technology 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 Lep Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NiSource and Lep Technology, you can compare the effects of market volatilities on NiSource and Lep Technology 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 Lep Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource and Lep Technology.
Diversification Opportunities for NiSource and Lep Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NiSource and Lep is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and Lep Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lep Technology 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 Lep Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lep Technology has no effect on the direction of NiSource i.e., NiSource and Lep Technology go up and down completely randomly.
Pair Corralation between NiSource and Lep Technology
If you would invest 3,622 in NiSource on September 12, 2024 and sell it today you would earn a total of 39.00 from holding NiSource or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
NiSource vs. Lep Technology
Performance |
| Timeline |
| NiSource |
| Lep Technology |
NiSource and Lep Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NiSource and Lep Technology
The main advantage of trading using opposite NiSource and Lep Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource position performs unexpectedly, Lep Technology 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 Lep Technology will offset losses from the drop in Lep Technology's long position.| NiSource vs. NewJersey Resources | NiSource vs. Northwest Natural Gas | NiSource vs. UGI Corporation | NiSource vs. Spire Inc |
| Lep Technology vs. Reservoir Media | Lep Technology vs. Citizens Bancorp Investment | Lep Technology vs. Alchemy Investments Acquisition | Lep Technology vs. Alvarium Tiedemann 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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