Correlation Between NYSE Composite and NISOURCE
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By analyzing existing cross correlation between NYSE Composite and NISOURCE FIN P, you can compare the effects of market volatilities on NYSE Composite and NISOURCE 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 NYSE Composite with a short position of NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and NISOURCE.
Diversification Opportunities for NYSE Composite and NISOURCE
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and NISOURCE is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and NISOURCE FIN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISOURCE FIN P and NYSE Composite 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 NYSE Composite are associated (or correlated) with NISOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISOURCE FIN P has no effect on the direction of NYSE Composite i.e., NYSE Composite and NISOURCE go up and down completely randomly.
Pair Corralation between NYSE Composite and NISOURCE
Assuming the 90 days trading horizon NYSE Composite is expected to generate 251.06 times less return on investment than NISOURCE. But when comparing it to its historical volatility, NYSE Composite is 170.63 times less risky than NISOURCE. It trades about 0.08 of its potential returns per unit of risk. NISOURCE FIN P is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 9,968 in NISOURCE FIN P on September 3, 2024 and sell it today you would earn a total of 7.00 from holding NISOURCE FIN P or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 51.72% |
| Values | Daily Returns |
NYSE Composite vs. NISOURCE FIN P
Performance |
| Timeline |
NYSE Composite and NISOURCE Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
NISOURCE FIN P
Pair trading matchups for NISOURCE
Pair Trading with NYSE Composite and NISOURCE
The main advantage of trading using opposite NYSE Composite and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, NISOURCE 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 NISOURCE will offset losses from the drop in NISOURCE's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| NISOURCE vs. AEP TEX INC | NISOURCE vs. US BANK NATIONAL | NISOURCE vs. MetLife | NISOURCE vs. Jackson Financial |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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