Correlation Between NiSource and Sellas Life
Can any of the company-specific risk be diversified away by investing in both NiSource and Sellas Life 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 Sellas Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NiSource and Sellas Life Sciences, you can compare the effects of market volatilities on NiSource and Sellas Life 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 Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource and Sellas Life.
Diversification Opportunities for NiSource and Sellas Life
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NiSource and Sellas is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences 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 Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of NiSource i.e., NiSource and Sellas Life go up and down completely randomly.
Pair Corralation between NiSource and Sellas Life
Allowing for the 90-day total investment horizon NiSource is expected to generate 0.18 times more return on investment than Sellas Life. However, NiSource is 5.47 times less risky than Sellas Life. It trades about 0.2 of its potential returns per unit of risk. Sellas Life Sciences is currently generating about 0.01 per unit of risk. If you would invest 2,794 in NiSource on November 28, 2024 and sell it today you would earn a total of 1,190 from holding NiSource or generate 42.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NiSource vs. Sellas Life Sciences
Performance |
| Timeline |
| NiSource |
| Sellas Life Sciences |
NiSource and Sellas Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NiSource and Sellas Life
The main advantage of trading using opposite NiSource and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource position performs unexpectedly, Sellas Life 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 Sellas Life will offset losses from the drop in Sellas Life's long position.| NiSource vs. NewJersey Resources | NiSource vs. Northwest Natural Gas | NiSource vs. UGI Corporation | NiSource vs. Spire Inc |
| Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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