Correlation Between NiSource and National CineMedia
Can any of the company-specific risk be diversified away by investing in both NiSource and National CineMedia 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 National CineMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NiSource and National CineMedia, you can compare the effects of market volatilities on NiSource and National CineMedia 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 National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiSource and National CineMedia.
Diversification Opportunities for NiSource and National CineMedia
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between NiSource and National is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding NiSource and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia 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 National CineMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National CineMedia has no effect on the direction of NiSource i.e., NiSource and National CineMedia go up and down completely randomly.
Pair Corralation between NiSource and National CineMedia
Allowing for the 90-day total investment horizon NiSource is expected to under-perform the National CineMedia. But the stock apears to be less risky and, when comparing its historical volatility, NiSource is 2.09 times less risky than National CineMedia. The stock trades about -0.23 of its potential returns per unit of risk. The National CineMedia is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 688.00 in National CineMedia on September 23, 2024 and sell it today you would lose (16.00) from holding National CineMedia or give up 2.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
NiSource vs. National CineMedia
Performance |
Timeline |
NiSource |
National CineMedia |
NiSource and National CineMedia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NiSource and National CineMedia
The main advantage of trading using opposite NiSource and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiSource position performs unexpectedly, National CineMedia 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 National CineMedia will offset losses from the drop in National CineMedia's long position.NiSource vs. NorthWestern | NiSource vs. Avista | NiSource vs. Otter Tail | NiSource vs. Companhia Paranaense de |
National CineMedia vs. CMG Holdings Group | National CineMedia vs. Beyond Commerce | National CineMedia vs. Mastermind | National CineMedia vs. Aquagold International |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |