Correlation Between NiSource and Xiabuxiabu Catering

Can any of the company-specific risk be diversified away by investing in both NiSource and Xiabuxiabu Catering 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 Xiabuxiabu Catering into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for NiSource and Xiabuxiabu Catering

-0.66

Correlation Coefficient

NiSource  Xiabuxiabu Catering

Excellent diversification

The 3 months correlation between NiSource and Xiabuxiabu is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and Xiabuxiabu Catering Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiabuxiabu Catering 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 Xiabuxiabu Catering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiabuxiabu Catering has no effect on the direction of NiSource i.e., NiSource and Xiabuxiabu Catering go up and down completely randomly.

Pair Corralation between NiSource and Xiabuxiabu Catering

Allowing for the 90-day total investment horizon NiSource is expected to generate 0.55 times more return on investment than Xiabuxiabu Catering. However, NiSource is 1.83 times less risky than Xiabuxiabu Catering. It trades about 0.33 of its potential returns per unit of risk. Xiabuxiabu Catering Management is currently generating about -0.16 per unit of risk. If you would invest  3,530  in NiSource on December 5, 2024 and sell it today you would earn a total of  593.00  from holding NiSource or generate 16.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	97.5%
Values	Daily Returns

NiSource  vs.  Xiabuxiabu Catering Management

NiSource

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NiSource are ranked lower than 12 (%) 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 April 2025.

Xiabuxiabu Catering

Risk-Adjusted Performance

Very Weak

Over the last 90 days Xiabuxiabu Catering Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with NiSource and Xiabuxiabu Catering

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

The idea behind NiSource and Xiabuxiabu Catering Management 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.