Correlation Between NiSource and INTERNATIONAL
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By analyzing existing cross correlation between NiSource and INTERNATIONAL BUSINESS MACHS, you can compare the effects of market volatilities on NiSource and INTERNATIONAL 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 INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource and INTERNATIONAL.
Diversification Opportunities for NiSource and INTERNATIONAL
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NiSource and INTERNATIONAL is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and INTERNATIONAL BUSINESS MACHS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL BUSINESS 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 INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL BUSINESS has no effect on the direction of NiSource i.e., NiSource and INTERNATIONAL go up and down completely randomly.
Pair Corralation between NiSource and INTERNATIONAL
Allowing for the 90-day total investment horizon NiSource is expected to generate 1.59 times more return on investment than INTERNATIONAL. However, NiSource is 1.59 times more volatile than INTERNATIONAL BUSINESS MACHS. It trades about 0.16 of its potential returns per unit of risk. INTERNATIONAL BUSINESS MACHS is currently generating about 0.04 per unit of risk. If you would invest 2,424 in NiSource on August 25, 2024 and sell it today you would earn a total of 1,347 from holding NiSource or generate 55.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.52% |
| Values | Daily Returns |
NiSource vs. INTERNATIONAL BUSINESS MACHS
Performance |
| Timeline |
| NiSource |
| INTERNATIONAL BUSINESS |
NiSource and INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NiSource and INTERNATIONAL
The main advantage of trading using opposite NiSource and INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource position performs unexpectedly, INTERNATIONAL 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 INTERNATIONAL will offset losses from the drop in INTERNATIONAL's long position.| NiSource vs. NewJersey Resources | NiSource vs. Northwest Natural Gas | NiSource vs. UGI Corporation | NiSource vs. Spire Inc |
| INTERNATIONAL vs. RLX Technology | INTERNATIONAL vs. Scandinavian Tobacco Group | INTERNATIONAL vs. Paiute Oil Mining | INTERNATIONAL vs. Harmony Gold Mining |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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