Correlation Between Marine Products and SOUTHERN
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By analyzing existing cross correlation between Marine Products and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on Marine Products 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 Marine Products with a short position of SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and SOUTHERN.
Diversification Opportunities for Marine Products and SOUTHERN
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marine and SOUTHERN is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products 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 Marine Products 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 Marine Products 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 Marine Products i.e., Marine Products and SOUTHERN go up and down completely randomly.
Pair Corralation between Marine Products and SOUTHERN
Considering the 90-day investment horizon Marine Products is expected to generate 1.99 times more return on investment than SOUTHERN. However, Marine Products is 1.99 times more volatile than SOUTHERN CALIF EDISON. It trades about 0.14 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about 0.13 per unit of risk. If you would invest 930.00 in Marine Products on September 5, 2024 and sell it today you would earn a total of 50.00 from holding Marine Products or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Marine Products vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| Marine Products |
| SOUTHERN CALIF EDISON |
Marine Products and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and SOUTHERN
The main advantage of trading using opposite Marine Products and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products 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.| Marine Products vs. Thor Industries | Marine Products vs. EZGO Technologies | Marine Products vs. Polaris Industries | Marine Products vs. LCI Industries |
| SOUTHERN vs. Ainsworth Game Technology | SOUTHERN vs. Xponential Fitness | SOUTHERN vs. Wicket Gaming AB | SOUTHERN vs. Marine Products |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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