Correlation Between Bank of New York and SOUTHERN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of New and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on Bank of New York and SOUTHERN 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 Bank of New York with a short position of SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and SOUTHERN.
Diversification Opportunities for Bank of New York and SOUTHERN
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and SOUTHERN is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bank of New and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON and Bank of New York 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 Bank of New are associated (or correlated) with SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of Bank of New York i.e., Bank of New York and SOUTHERN go up and down completely randomly.
Pair Corralation between Bank of New York and SOUTHERN
Allowing for the 90-day total investment horizon Bank of New York is expected to generate 22.91 times less return on investment than SOUTHERN. But when comparing it to its historical volatility, Bank of New is 44.76 times less risky than SOUTHERN. It trades about 0.1 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,342 in SOUTHERN CALIF EDISON on September 12, 2024 and sell it today you would earn a total of 451.00 from holding SOUTHERN CALIF EDISON or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 57.58% |
| Values | Daily Returns |
Bank of New vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| Bank of New York |
| SOUTHERN CALIF EDISON |
Bank of New York and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York and SOUTHERN
The main advantage of trading using opposite Bank of New York and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Bank of New York vs. Northern Trust | Bank of New York vs. Invesco Plc | Bank of New York vs. Franklin Resources | Bank of New York vs. T Rowe Price |
| SOUTHERN vs. Bank of New | SOUTHERN vs. Village Super Market | SOUTHERN vs. Logan Ridge Finance | SOUTHERN vs. Xiabuxiabu Catering Management |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |