Correlation Between NiSource and Schweiter Technologies
Can any of the company-specific risk be diversified away by investing in both NiSource and Schweiter Technologies 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 Schweiter Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NiSource and Schweiter Technologies AG, you can compare the effects of market volatilities on NiSource and Schweiter Technologies 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 Schweiter Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource and Schweiter Technologies.
Diversification Opportunities for NiSource and Schweiter Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NiSource and Schweiter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and Schweiter Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweiter Technologies 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 Schweiter Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweiter Technologies has no effect on the direction of NiSource i.e., NiSource and Schweiter Technologies go up and down completely randomly.
Pair Corralation between NiSource and Schweiter Technologies
If you would invest 3,706 in NiSource on November 3, 2024 and sell it today you would earn a total of 24.00 from holding NiSource or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
NiSource vs. Schweiter Technologies AG
Performance |
| Timeline |
| NiSource |
| Schweiter Technologies |
NiSource and Schweiter Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NiSource and Schweiter Technologies
The main advantage of trading using opposite NiSource and Schweiter Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource position performs unexpectedly, Schweiter Technologies 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 Schweiter Technologies will offset losses from the drop in Schweiter Technologies' long position.| NiSource vs. NewJersey Resources | NiSource vs. Northwest Natural Gas | NiSource vs. UGI Corporation | NiSource vs. Spire Inc |
| Schweiter Technologies vs. Trane Technologies plc | Schweiter Technologies vs. Masco | Schweiter Technologies vs. Quanex Building Products | Schweiter Technologies vs. Jeld Wen Holding |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |