Correlation Between Trupanion and NISOURCE
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By analyzing existing cross correlation between Trupanion and NISOURCE FIN P, you can compare the effects of market volatilities on Trupanion 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 Trupanion with a short position of NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trupanion and NISOURCE.
Diversification Opportunities for Trupanion and NISOURCE
Very good diversification
The 3 months correlation between Trupanion and NISOURCE is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Trupanion 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 Trupanion 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 Trupanion 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 Trupanion i.e., Trupanion and NISOURCE go up and down completely randomly.
Pair Corralation between Trupanion and NISOURCE
Given the investment horizon of 90 days Trupanion is expected to generate 2.78 times more return on investment than NISOURCE. However, Trupanion is 2.78 times more volatile than NISOURCE FIN P. It trades about 0.13 of its potential returns per unit of risk. NISOURCE FIN P is currently generating about 0.06 per unit of risk. If you would invest 4,339 in Trupanion on September 3, 2024 and sell it today you would earn a total of 992.00 from holding Trupanion or generate 22.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.0% |
| Values | Daily Returns |
Trupanion vs. NISOURCE FIN P
Performance |
| Timeline |
| Trupanion |
| NISOURCE FIN P |
Trupanion and NISOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trupanion and NISOURCE
The main advantage of trading using opposite Trupanion and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trupanion 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.| Trupanion vs. First American | Trupanion vs. Assurant | Trupanion vs. NMI Holdings | Trupanion vs. MGIC Investment Corp |
| NISOURCE vs. Yum Brands | NISOURCE vs. The Hanover Insurance | NISOURCE vs. Citizens | NISOURCE vs. Trupanion |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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