Correlation Between NiSource and 125896BN9
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By analyzing existing cross correlation between NiSource and CMS ENERGY P, you can compare the effects of market volatilities on NiSource and 125896BN9 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 125896BN9. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource and 125896BN9.
Diversification Opportunities for NiSource and 125896BN9
Good diversification
The 3 months correlation between NiSource and 125896BN9 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and CMS ENERGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMS ENERGY P 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 125896BN9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMS ENERGY P has no effect on the direction of NiSource i.e., NiSource and 125896BN9 go up and down completely randomly.
Pair Corralation between NiSource and 125896BN9
Allowing for the 90-day total investment horizon NiSource is expected to generate 163.98 times less return on investment than 125896BN9. But when comparing it to its historical volatility, NiSource is 105.68 times less risky than 125896BN9. It trades about 0.07 of its potential returns per unit of risk. CMS ENERGY P is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 9,381 in CMS ENERGY P on September 2, 2024 and sell it today you would lose (74.00) from holding CMS ENERGY P or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 53.43% |
| Values | Daily Returns |
NiSource vs. CMS ENERGY P
Performance |
| Timeline |
| NiSource |
| CMS ENERGY P |
NiSource and 125896BN9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NiSource and 125896BN9
The main advantage of trading using opposite NiSource and 125896BN9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource position performs unexpectedly, 125896BN9 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 125896BN9 will offset losses from the drop in 125896BN9's long position.| NiSource vs. NewJersey Resources | NiSource vs. Northwest Natural Gas | NiSource vs. UGI Corporation | NiSource vs. Spire Inc |
| 125896BN9 vs. CenterPoint Energy | 125896BN9 vs. NRG Energy | 125896BN9 vs. American Airlines Group | 125896BN9 vs. NiSource |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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