Correlation Between NiSource and PHILIP
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By analyzing existing cross correlation between NiSource and PHILIP MORRIS INTL, you can compare the effects of market volatilities on NiSource and PHILIP 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 PHILIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource and PHILIP.
Diversification Opportunities for NiSource and PHILIP
Excellent diversification
The 3 months correlation between NiSource and PHILIP is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and PHILIP MORRIS INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHILIP MORRIS INTL 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 PHILIP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHILIP MORRIS INTL has no effect on the direction of NiSource i.e., NiSource and PHILIP go up and down completely randomly.
Pair Corralation between NiSource and PHILIP
Allowing for the 90-day total investment horizon NiSource is expected to generate 0.77 times more return on investment than PHILIP. However, NiSource is 1.3 times less risky than PHILIP. It trades about 0.25 of its potential returns per unit of risk. PHILIP MORRIS INTL is currently generating about -0.02 per unit of risk. If you would invest 2,772 in NiSource on September 12, 2024 and sell it today you would earn a total of 889.00 from holding NiSource or generate 32.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.4% |
| Values | Daily Returns |
NiSource vs. PHILIP MORRIS INTL
Performance |
| Timeline |
| NiSource |
| PHILIP MORRIS INTL |
NiSource and PHILIP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NiSource and PHILIP
The main advantage of trading using opposite NiSource and PHILIP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource position performs unexpectedly, PHILIP 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 PHILIP will offset losses from the drop in PHILIP's long position.| NiSource vs. NewJersey Resources | NiSource vs. Northwest Natural Gas | NiSource vs. UGI Corporation | NiSource vs. Spire Inc |
| PHILIP vs. Funko Inc | PHILIP vs. United Parks Resorts | PHILIP vs. Life Time Group | PHILIP vs. Artisan Partners Asset |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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