Correlation Between NiSource and ENTERGY
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By analyzing existing cross correlation between NiSource and ENTERGY MISS INC, you can compare the effects of market volatilities on NiSource and ENTERGY 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 ENTERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource and ENTERGY.
Diversification Opportunities for NiSource and ENTERGY
Excellent diversification
The 3 months correlation between NiSource and ENTERGY is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and ENTERGY MISS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERGY MISS INC 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 ENTERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERGY MISS INC has no effect on the direction of NiSource i.e., NiSource and ENTERGY go up and down completely randomly.
Pair Corralation between NiSource and ENTERGY
Allowing for the 90-day total investment horizon NiSource is expected to generate 1.45 times more return on investment than ENTERGY. However, NiSource is 1.45 times more volatile than ENTERGY MISS INC. It trades about 0.07 of its potential returns per unit of risk. ENTERGY MISS INC is currently generating about 0.01 per unit of risk. If you would invest 2,611 in NiSource on September 2, 2024 and sell it today you would earn a total of 1,198 from holding NiSource or generate 45.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 82.06% |
| Values | Daily Returns |
NiSource vs. ENTERGY MISS INC
Performance |
| Timeline |
| NiSource |
| ENTERGY MISS INC |
NiSource and ENTERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NiSource and ENTERGY
The main advantage of trading using opposite NiSource and ENTERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource position performs unexpectedly, ENTERGY 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 ENTERGY will offset losses from the drop in ENTERGY's long position.| NiSource vs. NewJersey Resources | NiSource vs. Northwest Natural Gas | NiSource vs. UGI Corporation | NiSource vs. Spire Inc |
| ENTERGY vs. Oatly Group AB | ENTERGY vs. Simpson Manufacturing | ENTERGY vs. Jacobs Solutions | ENTERGY vs. Dream Finders Homes |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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