Correlation Between NiSource Unit and Suburban Propane
Can any of the company-specific risk be diversified away by investing in both NiSource Unit and Suburban Propane 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 Unit and Suburban Propane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NiSource Unit and Suburban Propane Partners, you can compare the effects of market volatilities on NiSource Unit and Suburban Propane 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 Unit with a short position of Suburban Propane. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource Unit and Suburban Propane.
Diversification Opportunities for NiSource Unit and Suburban Propane
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NiSource and Suburban is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NiSource Unit and Suburban Propane Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suburban Propane Partners and NiSource Unit 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 Unit are associated (or correlated) with Suburban Propane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suburban Propane Partners has no effect on the direction of NiSource Unit i.e., NiSource Unit and Suburban Propane go up and down completely randomly.
Pair Corralation between NiSource Unit and Suburban Propane
If you would invest 1,760 in Suburban Propane Partners on November 9, 2024 and sell it today you would earn a total of 314.00 from holding Suburban Propane Partners or generate 17.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
NiSource Unit vs. Suburban Propane Partners
Performance |
| Timeline |
| NiSource Unit |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Suburban Propane Partners |
NiSource Unit and Suburban Propane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NiSource Unit and Suburban Propane
The main advantage of trading using opposite NiSource Unit and Suburban Propane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource Unit position performs unexpectedly, Suburban Propane 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 Suburban Propane will offset losses from the drop in Suburban Propane's long position.The idea behind NiSource Unit and Suburban Propane Partners pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Suburban Propane vs. Northwest Natural Gas | Suburban Propane vs. NewJersey Resources | Suburban Propane vs. Atmos Energy | Suburban Propane vs. Chesapeake Utilities |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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