Utilities ยท Utilities - Regulated Gas ยท Completed evidence
NI relative to OGS
NiSource Inc is the relatively depressed leg. One Gas Inc is the relatively extended leg.
Specific pair strategy
What is the play in NI / OGS?
This is a relative trade. The result depends on which security performs better, not on whether the whole market rises or falls.
No active pair setup
Keep NI / OGS on routine watch
The two securities are not far enough apart, with enough confirmation, to support a useful convergence case.
This is the relatively depressed leg. The case needs it to recover or at least hold up better than the other leg.
This is the relatively extended leg. The case needs it to lag or weaken relative to the long leg.
A favourable relative move means NI rises more than OGS, falls less than OGS, or rises while OGS falls. If OGS outperforms NI, the pair moves against the case.
A future case would need an unusual separation, a dependable relationship and evidence favouring NI over OGS.
There is no reason to force a long or short leg while the relationship remains near normal.
There is no active case to invalidate because no relative-value position is currently supported.
Keep the pair on the relationship map and wait for a meaningful, evidence-backed separation.
Evidence now
- The spread itself has not yet gained a separate evidence catalyst.
What would invalidate it?
There is no current dislocation edge; transaction costs can dominate small spread movements.
Possible setup paths
How the relative-value idea could be expressed
These are research structures, not recommendations or position-size instructions. The current course above determines whether any structure is ready to study now.
Long NI / short OGS
Treat both legs as one relative position. The setup looks for NI to outperform OGS; NI can rise faster, fall less, or rise while OGS falls. The pair loses ground when OGS outperforms NI.
When it becomes relevantThis is a structure to study only after the current course changes from โNo setup at presentโ to confirmed convergence. A new, unusual separation would need to develop while the historical relationship remains dependable.Principal riskRequires a live review of both legs, borrow availability and cost, event dates, liquidity and the research normalisation.Study NI alone if its own evidence confirms
This simpler expression focuses on recovery in NI. It avoids short-borrow mechanics, but it no longer isolates relative value: the result is exposed to the broad market, the sector and NI-specific news.
When it becomes relevantA stronger case needs improving NI price structure and supporting evidence, not just a wide relationship gap.Principal riskCarries full single-security and broad-market direction risk.Study OGS alone if its support continues to weaken
This expression focuses on weakness in OGS. It may fit a leader-rollover case, but it also abandons the relative hedge and adds direct market direction, squeeze and company-event risk.
When it becomes relevantWeakening in OGS must be visible in its own completed evidence; relative extension alone is not enough.Principal riskShort selling can involve unlimited loss, borrow fees, recalls and forced close-outs.Any practical expression needs an independent review of suitability, portfolio risk, liquidity, current news and earnings, borrow availability and cost, transaction costs and tax.
Relationship gap ยท technical name: standardised residual
How far apart are they compared with normal?
Zero is the pair's historical centre. The outer guides show increasingly unusual departures from it.
This is the relationship gap after allowing for the pair's usual co-movement. Zero is its historical centre; the distance is measured in standard deviations, so different pairs can be compared on the same scale.
The latest gap is 0.61 standard deviations from normal. NI is the relatively depressed leg and OGS is the relatively extended leg. That is unusual separation, not proof that either security is cheap or expensive.
A move toward zero means convergence. A move farther from zero means the separation is extending and raises the risk that the old relationship is changing.
Common-base price paths
Which security created the gap?
Both paths begin at 100 so their relative movement is visible without mixing different share prices.
Both securities are reset to 100 at the first date. This removes the distraction of different share prices and shows how their completed weekly price paths diverged. It is not a valuation chart.
Since the common starting point, NI is +74.3% and OGS is +19.7%. The chart shows which price path contributed to the separation; the fitted relationship measure is more precise than the raw visual distance.
For convergence, watch for NI to catch up, OGS to lose ground, or both. The relationship can close even if both securities rise or both fall.
NIOGS
Completed daily timing
Is the gap closing yet?
The daily relationship adds timing context inside the slower weekly case. It does not replace the weekly validity checks.
This applies the same relationship to completed daily bars. It is the timing layer inside the weekly case, not a separate trading signal.
Gap extending: The completed daily gap is still widening. The weekly separation may be interesting, but timing has not confirmed a turn.
The first useful change would be for the daily line to stop extending and begin moving back toward zero.
NI ยท NiSource Inc
36/100 evidence score- Market Dynamics
- -1.004 ยท change -0.619
- Trend
- Positive
- Stage
- Stage 3 ยท Distribution
- Smart Money
- Neutral
- News sentiment
- Neutral
- Options
- Bullish
OGS ยท One Gas Inc
36/100 evidence score- Market Dynamics
- -0.592 ยท change 0.133
- Trend
- Positive
- Stage
- Stage 3 ยท Distribution
- Smart Money
- Neutral
- Short interest
- Crowded
- Options
- Mixed
Relationship diagnostics
Why this pair is on the map
How closely completed weekly returns moved together across the measurement window.
How consistent the fitted relationship remained across earlier and later parts of the sample.
An observed mean-reversion clock, not a deadline or a forecast.
How often the residual crossed its historical centre; repeated crossings matter more than a single fit.
The latest residual's location inside its own completed history.
Stored price, volume and size context only. It does not include a live short locate or cost.
State history
What changed and when
Daily timing changed
Completed daily timing changed to gap extending through 2026-08-18.
Daily timing changed
Completed daily timing changed to gap stable through 2026-08-17.
Relationship discovered
Published as Balanced relationship after the completed 2026-08-14 observation.
Same-industry map