Correlation Between Steven Madden and NISOURCE
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By analyzing existing cross correlation between Steven Madden and NISOURCE INC, you can compare the effects of market volatilities on Steven Madden 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 Steven Madden with a short position of NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steven Madden and NISOURCE.
Diversification Opportunities for Steven Madden and NISOURCE
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Steven and NISOURCE is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Steven Madden and NISOURCE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISOURCE INC and Steven Madden 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 Steven Madden 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 INC has no effect on the direction of Steven Madden i.e., Steven Madden and NISOURCE go up and down completely randomly.
Pair Corralation between Steven Madden and NISOURCE
Given the investment horizon of 90 days Steven Madden is expected to generate 25.48 times less return on investment than NISOURCE. But when comparing it to its historical volatility, Steven Madden is 28.04 times less risky than NISOURCE. It trades about 0.05 of its potential returns per unit of risk. NISOURCE INC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 7,895 in NISOURCE INC on September 3, 2024 and sell it today you would lose (196.00) from holding NISOURCE INC or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.02% |
| Values | Daily Returns |
Steven Madden vs. NISOURCE INC
Performance |
| Timeline |
| Steven Madden |
| NISOURCE INC |
Steven Madden and NISOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steven Madden and NISOURCE
The main advantage of trading using opposite Steven Madden and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steven Madden 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.| Steven Madden vs. Weyco Group | Steven Madden vs. Caleres | Steven Madden vs. Rocky Brands | Steven Madden vs. Designer Brands |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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