Correlation Between Suburban Propane and NiSource Unit
Can any of the company-specific risk be diversified away by investing in both Suburban Propane 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 Suburban Propane and NiSource Unit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suburban Propane Partners and NiSource Unit, you can compare the effects of market volatilities on Suburban Propane 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 Suburban Propane with a short position of NiSource Unit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suburban Propane and NiSource Unit.
Diversification Opportunities for Suburban Propane and NiSource Unit
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Suburban and NiSource is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Suburban Propane Partners and NiSource Unit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NiSource Unit and Suburban Propane 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 Suburban Propane Partners 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 Suburban Propane i.e., Suburban Propane and NiSource Unit go up and down completely randomly.
Pair Corralation between Suburban Propane and NiSource Unit
If you would invest 1,760 in Suburban Propane Partners on November 9, 2024 and sell it today you would earn a total of 314.00 from holding Suburban Propane Partners or generate 17.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Suburban Propane Partners vs. NiSource Unit
Performance |
| Timeline |
| Suburban Propane Partners |
| NiSource Unit |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Suburban Propane and NiSource Unit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suburban Propane and NiSource Unit
The main advantage of trading using opposite Suburban Propane and NiSource Unit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suburban Propane 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.| Suburban Propane vs. Northwest Natural Gas | Suburban Propane vs. NewJersey Resources | Suburban Propane vs. Atmos Energy | Suburban Propane 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |