Correlation Between X Financial and NISOURCE
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By analyzing existing cross correlation between X Financial Class and NISOURCE INC, you can compare the effects of market volatilities on X Financial 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 X Financial with a short position of NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Financial and NISOURCE.
Diversification Opportunities for X Financial and NISOURCE
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XYF and NISOURCE is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding X Financial Class and NISOURCE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISOURCE INC and X Financial 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 X Financial Class 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 X Financial i.e., X Financial and NISOURCE go up and down completely randomly.
Pair Corralation between X Financial and NISOURCE
Considering the 90-day investment horizon X Financial Class is expected to under-perform the NISOURCE. In addition to that, X Financial is 1.14 times more volatile than NISOURCE INC. It trades about -0.11 of its total potential returns per unit of risk. NISOURCE INC is currently generating about 0.01 per unit of volatility. If you would invest 9,129 in NISOURCE INC on October 20, 2024 and sell it today you would lose (25.00) from holding NISOURCE INC or give up 0.27% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.0% |
Values | Daily Returns |
X Financial Class vs. NISOURCE INC
Performance |
Timeline |
X Financial Class |
NISOURCE INC |
X Financial and NISOURCE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with X Financial and NISOURCE
The main advantage of trading using opposite X Financial and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Financial 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.X Financial vs. LM Funding America | X Financial vs. Nisun International Enterprise | X Financial vs. Qudian Inc | X Financial vs. FinVolution Group |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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