Correlation Between Gulf Island and NISOURCE
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gulf Island Fabrication and NISOURCE INC, you can compare the effects of market volatilities on Gulf Island 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 Gulf Island with a short position of NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gulf Island and NISOURCE.
Diversification Opportunities for Gulf Island and NISOURCE
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gulf and NISOURCE is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Gulf Island Fabrication and NISOURCE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISOURCE INC and Gulf Island 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 Gulf Island Fabrication 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 INC has no effect on the direction of Gulf Island i.e., Gulf Island and NISOURCE go up and down completely randomly.
Pair Corralation between Gulf Island and NISOURCE
Given the investment horizon of 90 days Gulf Island Fabrication is expected to generate 13.06 times more return on investment than NISOURCE. However, Gulf Island is 13.06 times more volatile than NISOURCE INC. It trades about 0.04 of its potential returns per unit of risk. NISOURCE INC is currently generating about 0.06 per unit of risk. If you would invest 498.00 in Gulf Island Fabrication on September 23, 2024 and sell it today you would earn a total of 188.00 from holding Gulf Island Fabrication or generate 37.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.4% |
Values | Daily Returns |
Gulf Island Fabrication vs. NISOURCE INC
Performance |
Timeline |
Gulf Island Fabrication |
NISOURCE INC |
Gulf Island and NISOURCE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gulf Island and NISOURCE
The main advantage of trading using opposite Gulf Island and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gulf Island 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.Gulf Island vs. Insteel Industries | Gulf Island vs. Mayville Engineering Co | Gulf Island vs. ESAB Corp | Gulf Island vs. Northwest Pipe |
NISOURCE vs. Everus Construction Group | NISOURCE vs. Tritent International Agriculture | NISOURCE vs. ReTo Eco Solutions | NISOURCE vs. Highway Holdings Limited |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |