Correlation Between AmeriGas Partners and NiSource
Can any of the company-specific risk be diversified away by investing in both AmeriGas Partners and NiSource 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 AmeriGas Partners and NiSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmeriGas Partners LP and NiSource, you can compare the effects of market volatilities on AmeriGas Partners 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 AmeriGas Partners with a short position of NiSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmeriGas Partners and NiSource.
Diversification Opportunities for AmeriGas Partners and NiSource
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AmeriGas and NiSource is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AmeriGas Partners LP and NiSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NiSource and AmeriGas Partners 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 AmeriGas Partners LP 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 has no effect on the direction of AmeriGas Partners i.e., AmeriGas Partners and NiSource go up and down completely randomly.
Pair Corralation between AmeriGas Partners and NiSource
If you would invest 2,487 in NiSource on January 26, 2024 and sell it today you would earn a total of 331.00 from holding NiSource or generate 13.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AmeriGas Partners LP vs. NiSource
Performance |
| Timeline |
| AmeriGas Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NiSource |
AmeriGas Partners and NiSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmeriGas Partners and NiSource
The main advantage of trading using opposite AmeriGas Partners and NiSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmeriGas Partners 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.| AmeriGas Partners vs. Biglari Holdings | AmeriGas Partners vs. Dave Busters Entertainment | AmeriGas Partners vs. Nuvalent | AmeriGas Partners vs. Wingstop |
| NiSource vs. NewJersey Resources | NiSource vs. Northwest Natural Gas | NiSource vs. UGI Corporation | NiSource vs. Spire Inc |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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