Correlation Between RGC Resources and NiSource Unit
Can any of the company-specific risk be diversified away by investing in both RGC Resources and NiSource Unit 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 RGC Resources and NiSource Unit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RGC Resources and NiSource Unit, you can compare the effects of market volatilities on RGC Resources and NiSource Unit 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 RGC Resources with a short position of NiSource Unit. Check out your portfolio center. Please also check ongoing floating volatility patterns of RGC Resources and NiSource Unit.
Diversification Opportunities for RGC Resources and NiSource Unit
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between RGC and NiSource is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding RGC Resources and NiSource Unit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NiSource Unit and RGC Resources 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 RGC Resources are associated (or correlated) with NiSource Unit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NiSource Unit has no effect on the direction of RGC Resources i.e., RGC Resources and NiSource Unit go up and down completely randomly.
Pair Corralation between RGC Resources and NiSource Unit
If you would invest 2,035 in RGC Resources on August 27, 2024 and sell it today you would earn a total of 89.00 from holding RGC Resources or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
RGC Resources vs. NiSource Unit
Performance |
| Timeline |
| RGC Resources |
| NiSource Unit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
RGC Resources and NiSource Unit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RGC Resources and NiSource Unit
The main advantage of trading using opposite RGC Resources and NiSource Unit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RGC Resources position performs unexpectedly, NiSource Unit 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 Unit will offset losses from the drop in NiSource Unit's long position.| RGC Resources vs. NewJersey Resources | RGC Resources vs. One Gas | RGC Resources vs. Northwest Natural Gas | RGC Resources 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |