Correlation Between 125896BU3 and NiSource
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By analyzing existing cross correlation between US125896BU39 and NiSource, you can compare the effects of market volatilities on 125896BU3 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 125896BU3 with a short position of NiSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of 125896BU3 and NiSource.
Diversification Opportunities for 125896BU3 and NiSource
Pay attention - limited upside
The 3 months correlation between 125896BU3 and NiSource is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding US125896BU39 and NiSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NiSource and 125896BU3 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 US125896BU39 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 has no effect on the direction of 125896BU3 i.e., 125896BU3 and NiSource go up and down completely randomly.
Pair Corralation between 125896BU3 and NiSource
Assuming the 90 days trading horizon 125896BU3 is expected to generate 75.86 times less return on investment than NiSource. But when comparing it to its historical volatility, US125896BU39 is 1.19 times less risky than NiSource. It trades about 0.0 of its potential returns per unit of risk. NiSource is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,550 in NiSource on September 2, 2024 and sell it today you would earn a total of 1,259 from holding NiSource or generate 49.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.56% |
| Values | Daily Returns |
US125896BU39 vs. NiSource
Performance |
| Timeline |
| US125896BU39 |
| NiSource |
125896BU3 and NiSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 125896BU3 and NiSource
The main advantage of trading using opposite 125896BU3 and NiSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 125896BU3 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.| 125896BU3 vs. NiSource | 125896BU3 vs. Procter Gamble | 125896BU3 vs. Kinetik Holdings | 125896BU3 vs. Transportadora de Gas |
| NiSource vs. NewJersey Resources | NiSource vs. Northwest Natural Gas | NiSource vs. UGI Corporation | NiSource vs. Spire Inc |
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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