Correlation Between Air Products and NISOURCE
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By analyzing existing cross correlation between Air Products and and NISOURCE FIN P, you can compare the effects of market volatilities on Air Products 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 Air Products with a short position of NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and NISOURCE.
Diversification Opportunities for Air Products and NISOURCE
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Air and NISOURCE is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and 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 Air Products 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 Air Products and 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 Air Products i.e., Air Products and NISOURCE go up and down completely randomly.
Pair Corralation between Air Products and NISOURCE
Considering the 90-day investment horizon Air Products is expected to generate 787.59 times less return on investment than NISOURCE. But when comparing it to its historical volatility, Air Products and is 67.9 times less risky than NISOURCE. It trades about 0.01 of its potential returns per unit of risk. NISOURCE FIN P is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 10,373 in NISOURCE FIN P on September 25, 2024 and sell it today you would earn a total of 290.00 from holding NISOURCE FIN P or generate 2.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 47.08% |
Values | Daily Returns |
Air Products and vs. NISOURCE FIN P
Performance |
Timeline |
Air Products |
NISOURCE FIN P |
Air Products and NISOURCE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Air Products and NISOURCE
The main advantage of trading using opposite Air Products and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products 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.Air Products vs. PPG Industries | Air Products vs. Sherwin Williams Co | Air Products vs. Ecolab Inc | Air Products vs. Albemarle Corp |
NISOURCE vs. Hawkins | NISOURCE vs. Harmony Gold Mining | NISOURCE vs. Luxfer Holdings PLC | NISOURCE vs. Air Products and |
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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