Correlation Between NiSource and Catheter Precision
Can any of the company-specific risk be diversified away by investing in both NiSource and Catheter Precision 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 Catheter Precision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NiSource and Catheter Precision, you can compare the effects of market volatilities on NiSource and Catheter Precision 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 Catheter Precision. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource and Catheter Precision.
Diversification Opportunities for NiSource and Catheter Precision
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NiSource and Catheter is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and Catheter Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catheter Precision 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 Catheter Precision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catheter Precision has no effect on the direction of NiSource i.e., NiSource and Catheter Precision go up and down completely randomly.
Pair Corralation between NiSource and Catheter Precision
Allowing for the 90-day total investment horizon NiSource is expected to generate 0.18 times more return on investment than Catheter Precision. However, NiSource is 5.54 times less risky than Catheter Precision. It trades about 0.13 of its potential returns per unit of risk. Catheter Precision is currently generating about 0.02 per unit of risk. If you would invest 3,670 in NiSource on October 29, 2024 and sell it today you would earn a total of 106.00 from holding NiSource or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NiSource vs. Catheter Precision
Performance |
| Timeline |
| NiSource |
| Catheter Precision |
NiSource and Catheter Precision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NiSource and Catheter Precision
The main advantage of trading using opposite NiSource and Catheter Precision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource position performs unexpectedly, Catheter Precision 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 Catheter Precision will offset losses from the drop in Catheter Precision's long position.| NiSource vs. NewJersey Resources | NiSource vs. Northwest Natural Gas | NiSource vs. UGI Corporation | NiSource vs. Spire Inc |
| Catheter Precision vs. Allient | Catheter Precision vs. MYT Netherlands Parent | Catheter Precision vs. Renesas Electronics | Catheter Precision vs. IPG Photonics |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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