Correlation Between Spectrum Brands and NISOURCE
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By analyzing existing cross correlation between Spectrum Brands Holdings and NISOURCE FIN P, you can compare the effects of market volatilities on Spectrum Brands 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 Spectrum Brands with a short position of NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectrum Brands and NISOURCE.
Diversification Opportunities for Spectrum Brands and NISOURCE
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Spectrum and NISOURCE is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Spectrum Brands Holdings 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 Spectrum Brands 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 Spectrum Brands Holdings 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 Spectrum Brands i.e., Spectrum Brands and NISOURCE go up and down completely randomly.
Pair Corralation between Spectrum Brands and NISOURCE
Considering the 90-day investment horizon Spectrum Brands Holdings is expected to under-perform the NISOURCE. In addition to that, Spectrum Brands is 1.51 times more volatile than NISOURCE FIN P. It trades about -0.04 of its total potential returns per unit of risk. NISOURCE FIN P is currently generating about 0.07 per unit of volatility. If you would invest 7,939 in NISOURCE FIN P on September 12, 2024 and sell it today you would earn a total of 119.00 from holding NISOURCE FIN P or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Spectrum Brands Holdings vs. NISOURCE FIN P
Performance |
| Timeline |
| Spectrum Brands Holdings |
| NISOURCE FIN P |
Spectrum Brands and NISOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spectrum Brands and NISOURCE
The main advantage of trading using opposite Spectrum Brands and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrum Brands 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.| Spectrum Brands vs. European Wax Center | Spectrum Brands vs. Inter Parfums | Spectrum Brands vs. Mannatech Incorporated | Spectrum Brands vs. Nu Skin Enterprises |
| NISOURCE vs. Century Aluminum | NISOURCE vs. CECO Environmental Corp | NISOURCE vs. Amgen Inc | NISOURCE vs. Tianjin Capital Environmental |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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