Correlation Between NOVARTIS and One Gas
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By analyzing existing cross correlation between NOVARTIS CAP P and One Gas, you can compare the effects of market volatilities on NOVARTIS and One Gas 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 NOVARTIS with a short position of One Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of NOVARTIS and One Gas.
Diversification Opportunities for NOVARTIS and One Gas
Very good diversification
The 3 months correlation between NOVARTIS and One is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding NOVARTIS CAP P and One Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Gas and NOVARTIS 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 NOVARTIS CAP P are associated (or correlated) with One Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Gas has no effect on the direction of NOVARTIS i.e., NOVARTIS and One Gas go up and down completely randomly.
Pair Corralation between NOVARTIS and One Gas
Assuming the 90 days trading horizon NOVARTIS CAP P is expected to generate 0.67 times more return on investment than One Gas. However, NOVARTIS CAP P is 1.48 times less risky than One Gas. It trades about 0.02 of its potential returns per unit of risk. One Gas is currently generating about 0.01 per unit of risk. If you would invest 8,893 in NOVARTIS CAP P on September 12, 2024 and sell it today you would earn a total of 394.00 from holding NOVARTIS CAP P or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.86% |
| Values | Daily Returns |
NOVARTIS CAP P vs. One Gas
Performance |
| Timeline |
| NOVARTIS CAP P |
| One Gas |
NOVARTIS and One Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NOVARTIS and One Gas
The main advantage of trading using opposite NOVARTIS and One Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NOVARTIS position performs unexpectedly, One Gas 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 One Gas will offset losses from the drop in One Gas' long position.| NOVARTIS vs. Avient Corp | NOVARTIS vs. Hooker Furniture | NOVARTIS vs. Sensient Technologies | NOVARTIS vs. Chemours Co |
| One Gas vs. Northwest Natural Gas | One Gas vs. Chesapeake Utilities | One Gas vs. NewJersey Resources | One Gas vs. RGC Resources |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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