Correlation Between NiSource and Rubis SCA
Can any of the company-specific risk be diversified away by investing in both NiSource and Rubis SCA 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 Rubis SCA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NiSource and Rubis SCA, you can compare the effects of market volatilities on NiSource and Rubis SCA 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 Rubis SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource and Rubis SCA.
Diversification Opportunities for NiSource and Rubis SCA
Poor diversification
The 3 months correlation between NiSource and Rubis is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and Rubis SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubis SCA 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 Rubis SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubis SCA has no effect on the direction of NiSource i.e., NiSource and Rubis SCA go up and down completely randomly.
Pair Corralation between NiSource and Rubis SCA
Assuming the 90 days horizon NiSource is expected to under-perform the Rubis SCA. In addition to that, NiSource is 1.55 times more volatile than Rubis SCA. It trades about -0.05 of its total potential returns per unit of risk. Rubis SCA is currently generating about 0.22 per unit of volatility. If you would invest 2,518 in Rubis SCA on December 10, 2024 and sell it today you would earn a total of 136.00 from holding Rubis SCA or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NiSource vs. Rubis SCA
Performance |
| Timeline |
| NiSource |
| Rubis SCA |
NiSource and Rubis SCA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NiSource and Rubis SCA
The main advantage of trading using opposite NiSource and Rubis SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource position performs unexpectedly, Rubis SCA 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 Rubis SCA will offset losses from the drop in Rubis SCA's long position.| NiSource vs. GOME Retail Holdings | NiSource vs. Phibro Animal Health | NiSource vs. Cardinal Health | NiSource vs. Planet Fitness |
| Rubis SCA vs. Mitsubishi Materials | Rubis SCA vs. Sumitomo Rubber Industries | Rubis SCA vs. SWISS WATER DECAFFCOFFEE | Rubis SCA vs. Heidelberg Materials AG |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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