Correlation Between NiSource and Core Scientific,

Can any of the company-specific risk be diversified away by investing in both NiSource and Core Scientific, at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NiSource and Core Scientific, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NiSource and Core Scientific, Common, you can compare the effects of market volatilities on NiSource and Core Scientific, 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 Core Scientific,. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource and Core Scientific,.

Diversification Opportunities for NiSource and Core Scientific,

0.85

Correlation Coefficient

NiSource  Core Scientific,

Very poor diversification

The 3 months correlation between NiSource and Core is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and Core Scientific, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Scientific, Common 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 are associated (or correlated) with Core Scientific,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Scientific, Common has no effect on the direction of NiSource i.e., NiSource and Core Scientific, go up and down completely randomly.

Pair Corralation between NiSource and Core Scientific,

Allowing for the 90-day total investment horizon NiSource is expected to generate 62.38 times less return on investment than Core Scientific,. But when comparing it to its historical volatility, NiSource is 53.15 times less risky than Core Scientific,. It trades about 0.07 of its potential returns per unit of risk. Core Scientific, Common is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  9.16  in Core Scientific, Common on October 11, 2024 and sell it today you would earn a total of  1,396  from holding Core Scientific, Common or generate 15238.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	54.14%
Values	Daily Returns

NiSource  vs.  Core Scientific, Common

NiSource

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NiSource are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, NiSource may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Core Scientific, Common

Risk-Adjusted Performance

3 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Core Scientific, Common are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Core Scientific, may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with NiSource and Core Scientific,

The main advantage of trading using opposite NiSource and Core Scientific, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource position performs unexpectedly, Core Scientific, 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 Core Scientific, will offset losses from the drop in Core Scientific,'s long position.

The idea behind NiSource and Core Scientific, Common pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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.