Correlation Between NISOURCE and Freedom Bank
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By analyzing existing cross correlation between NISOURCE INC and Freedom Bank of, you can compare the effects of market volatilities on NISOURCE and Freedom Bank 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 NISOURCE with a short position of Freedom Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of NISOURCE and Freedom Bank.
Diversification Opportunities for NISOURCE and Freedom Bank
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between NISOURCE and Freedom is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding NISOURCE INC and Freedom Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freedom Bank and NISOURCE 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 NISOURCE INC are associated (or correlated) with Freedom Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freedom Bank has no effect on the direction of NISOURCE i.e., NISOURCE and Freedom Bank go up and down completely randomly.
Pair Corralation between NISOURCE and Freedom Bank
Assuming the 90 days trading horizon NISOURCE INC is expected to under-perform the Freedom Bank. But the bond apears to be less risky and, when comparing its historical volatility, NISOURCE INC is 1.17 times less risky than Freedom Bank. The bond trades about -0.01 of its potential returns per unit of risk. The Freedom Bank of is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,126 in Freedom Bank of on September 12, 2024 and sell it today you would lose (25.00) from holding Freedom Bank of or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.24% |
| Values | Daily Returns |
NISOURCE INC vs. Freedom Bank of
Performance |
| Timeline |
| NISOURCE INC |
| Freedom Bank |
NISOURCE and Freedom Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NISOURCE and Freedom Bank
The main advantage of trading using opposite NISOURCE and Freedom Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NISOURCE position performs unexpectedly, Freedom Bank 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 Freedom Bank will offset losses from the drop in Freedom Bank's long position.| NISOURCE vs. Freedom Bank of | NISOURCE vs. AmTrust Financial Services | NISOURCE vs. Fast Retailing Co | NISOURCE vs. Artisan Partners Asset |
| Freedom Bank vs. HUMANA INC | Freedom Bank vs. Barloworld Ltd ADR | Freedom Bank vs. Morningstar Unconstrained Allocation | Freedom Bank vs. Thrivent High Yield |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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