Correlation Between Expand Energy and Southern BancShares
Can any of the company-specific risk be diversified away by investing in both Expand Energy and Southern BancShares 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 Expand Energy and Southern BancShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expand Energy and Southern BancShares PFD, you can compare the effects of market volatilities on Expand Energy and Southern BancShares 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 Expand Energy with a short position of Southern BancShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expand Energy and Southern BancShares.
Diversification Opportunities for Expand Energy and Southern BancShares
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Expand and Southern is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Expand Energy and Southern BancShares PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern BancShares PFD and Expand Energy 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 Expand Energy are associated (or correlated) with Southern BancShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern BancShares PFD has no effect on the direction of Expand Energy i.e., Expand Energy and Southern BancShares go up and down completely randomly.
Pair Corralation between Expand Energy and Southern BancShares
If you would invest 8,963 in Expand Energy on November 3, 2024 and sell it today you would earn a total of 937.00 from holding Expand Energy or generate 10.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Expand Energy vs. Southern BancShares PFD
Performance |
| Timeline |
| Expand Energy |
| Southern BancShares PFD |
Expand Energy and Southern BancShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expand Energy and Southern BancShares
The main advantage of trading using opposite Expand Energy and Southern BancShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expand Energy position performs unexpectedly, Southern BancShares 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 BancShares will offset losses from the drop in Southern BancShares' long position.| Expand Energy vs. BRP Inc | Expand Energy vs. Life Time Group | Expand Energy vs. Pintec Technology Holdings | Expand Energy vs. Nasdaq Inc |
| Southern BancShares vs. Grocery Outlet Holding | Southern BancShares vs. PennantPark Floating Rate | Southern BancShares vs. FS KKR Capital | Southern BancShares vs. Gladstone Investment |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |