Southern Correlations

SOJC Preferred Stock

USD 23.90 0.05 0.21%

The current 90-days correlation between Southern and Atmos Energy is 0.26 (i.e., Modest diversification). The correlation of Southern is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Southern Correlation With Market

Average diversification

The correlation between Southern Co and DJI is 0.15 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Southern Co and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Southern could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Southern when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Southern - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Southern Co to buy it.

Moving together with Southern Preferred Stock

0.87	DTB	DTE Energy	Pair Corr
0.81	DTG	DTE Energy	Pair Corr
0.87	SOJE	Southern Company	Pair Corr
0.68	NEE-PN	Nextera Energy	Pair Corr
0.76	NEE-PS	NextEra Energy,	Pair Corr

Moving against Southern Preferred Stock

0.66	CGBSW	Crown LNG Holdings	Pair Corr
0.57	CDZIP	Cadiz Depositary Shares	Pair Corr
0.55	PCG-PI	Pacific Gas	Pair Corr
0.54	EONGY	EON SE ADR	Pair Corr
0.53	PCG-PC	Pacific Gas	Pair Corr
0.35	VSTEW	Vast Renewables	Pair Corr
0.54	VIVHY	Vivendi SA PK	Pair Corr
0.47	VIASP	Via Renewables	Pair Corr
0.45	ATCOL	Atlas Corp	Pair Corr
0.36	BEPJ	Brookfield Renewable	Pair Corr
0.34	NGL-PC	NGL Energy Partners	Pair Corr
0.34	NGL-PB	NGL Energy Partners	Pair Corr
0.31	PCTTW	PureCycle Technologies	Pair Corr

Related Correlations Analysis

	ATO	MSN	AM	PYTCF	NWE	MAT	PRKS
ATO		0.38	0.74	0.64	0.47	-0.25	0.74	ATO
MSN	0.38		0.43	0.22	0.31	0.25	0.12	MSN
AM	0.74	0.43		0.29	0.41	-0.11	0.42	AM
PYTCF	0.64	0.22	0.29		-0.19	-0.01	0.78	PYTCF
NWE	0.47	0.31	0.41	-0.19		-0.33	0.11	NWE
MAT	-0.25	0.25	-0.11	-0.01	-0.33		-0.12	MAT
PRKS	0.74	0.12	0.42	0.78	0.11	-0.12		PRKS
	ATO	MSN	AM	PYTCF	NWE	MAT	PRKS

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

PRKS	+ 0.78	PYTCF
AM	+ 0.74	ATO
PRKS	+ 0.74	ATO
PYTCF	+ 0.64	ATO
NWE	+ 0.47	ATO
AM	+ 0.43	MSN

High negative correlations

MAT	- 0.33	NWE
MAT	- 0.25	ATO
NWE	- 0.19	PYTCF
PRKS	- 0.12	MAT
MAT	- 0.11	AM
MAT	- 0.01	PYTCF

Risk-Adjusted Indicators

There is a big difference between Southern Preferred Stock performing well and Southern Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Southern's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
ATO	0.66	0.19	0.18	0.58	0.35	(0.77)	1.84	(1.17)	3.85
MSN	2.28	0.04	0.00	0.18	2.72	(4.27)	6.82	(5.66)	16.89
AM	0.99	0.06	0.03	0.18	1.29	(1.00)	2.27	(2.12)	6.60
PYTCF	0.66	0.23	0.00	0.70	0.00	0.00	0.00	0.00	21.48
NWE	0.83	0.03	0.00	0.14	1.02	(0.87)	1.61	(2.04)	5.30
MAT	1.25	(0.06)	0.00	0.65	0.00	0.00	2.93	(2.31)	11.42
PRKS	1.58	0.13	0.08	0.21	1.63	(1.72)	3.27	(2.89)	10.38

Be your own money manager

Our tools can tell you how much better you can do entering a position in Southern without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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