Correlation Between Palantir Technologies and NISOURCE
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By analyzing existing cross correlation between Palantir Technologies Class and NISOURCE FIN P, you can compare the effects of market volatilities on Palantir Technologies 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 Palantir Technologies with a short position of NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palantir Technologies and NISOURCE.
Diversification Opportunities for Palantir Technologies and NISOURCE
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Palantir and NISOURCE is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Palantir Technologies Class 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 Palantir Technologies 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 Palantir Technologies Class 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 Palantir Technologies i.e., Palantir Technologies and NISOURCE go up and down completely randomly.
Pair Corralation between Palantir Technologies and NISOURCE
Given the investment horizon of 90 days Palantir Technologies is expected to generate 4.71 times less return on investment than NISOURCE. But when comparing it to its historical volatility, Palantir Technologies Class is 12.55 times less risky than NISOURCE. It trades about 0.13 of its potential returns per unit of risk. NISOURCE FIN P is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,291 in NISOURCE FIN P on September 3, 2024 and sell it today you would lose (474.00) from holding NISOURCE FIN P or give up 5.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.13% |
| Values | Daily Returns |
Palantir Technologies Class vs. NISOURCE FIN P
Performance |
| Timeline |
| Palantir Technologies |
| NISOURCE FIN P |
Palantir Technologies and NISOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palantir Technologies and NISOURCE
The main advantage of trading using opposite Palantir Technologies and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palantir Technologies 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.| Palantir Technologies vs. Palo Alto Networks | Palantir Technologies vs. Adobe Systems Incorporated | Palantir Technologies vs. Crowdstrike Holdings | Palantir Technologies vs. Block Inc |
| NISOURCE vs. Shoe Carnival | NISOURCE vs. American Eagle Outfitters | NISOURCE vs. Mattel Inc | NISOURCE vs. Burlington Stores |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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