Correlation Between Innovator Loup and NISOURCE
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By analyzing existing cross correlation between Innovator Loup Frontier and NISOURCE FIN P, you can compare the effects of market volatilities on Innovator Loup 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 Innovator Loup with a short position of NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator Loup and NISOURCE.
Diversification Opportunities for Innovator Loup and NISOURCE
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Innovator and NISOURCE is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Innovator Loup Frontier 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 Innovator Loup 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 Innovator Loup Frontier 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 Innovator Loup i.e., Innovator Loup and NISOURCE go up and down completely randomly.
Pair Corralation between Innovator Loup and NISOURCE
Given the investment horizon of 90 days Innovator Loup is expected to generate 13.93 times less return on investment than NISOURCE. But when comparing it to its historical volatility, Innovator Loup Frontier is 29.28 times less risky than NISOURCE. It trades about 0.09 of its potential returns per unit of risk. NISOURCE FIN P is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,488 in NISOURCE FIN P on September 23, 2024 and sell it today you would earn a total of 135.00 from holding NISOURCE FIN P or generate 1.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 91.15% |
Values | Daily Returns |
Innovator Loup Frontier vs. NISOURCE FIN P
Performance |
Timeline |
Innovator Loup Frontier |
NISOURCE FIN P |
Innovator Loup and NISOURCE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Innovator Loup and NISOURCE
The main advantage of trading using opposite Innovator Loup and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator Loup 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.Innovator Loup vs. iShares Semiconductor ETF | Innovator Loup vs. Technology Select Sector | Innovator Loup vs. Financial Select Sector | Innovator Loup vs. Consumer Discretionary Select |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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