Correlation Between Southwest Gas and Corus Entertainment
Can any of the company-specific risk be diversified away by investing in both Southwest Gas and Corus Entertainment 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 Southwest Gas and Corus Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southwest Gas Holdings and Corus Entertainment, you can compare the effects of market volatilities on Southwest Gas and Corus Entertainment 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 Southwest Gas with a short position of Corus Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southwest Gas and Corus Entertainment.
Diversification Opportunities for Southwest Gas and Corus Entertainment
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Southwest and Corus is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Southwest Gas Holdings and Corus Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corus Entertainment and Southwest Gas 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 Southwest Gas Holdings are associated (or correlated) with Corus Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corus Entertainment has no effect on the direction of Southwest Gas i.e., Southwest Gas and Corus Entertainment go up and down completely randomly.
Pair Corralation between Southwest Gas and Corus Entertainment
If you would invest 7,489 in Southwest Gas Holdings on August 31, 2024 and sell it today you would earn a total of 327.00 from holding Southwest Gas Holdings or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Southwest Gas Holdings vs. Corus Entertainment
Performance |
| Timeline |
| Southwest Gas Holdings |
| Corus Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Southwest Gas and Corus Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southwest Gas and Corus Entertainment
The main advantage of trading using opposite Southwest Gas and Corus Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southwest Gas position performs unexpectedly, Corus Entertainment 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 Corus Entertainment will offset losses from the drop in Corus Entertainment's long position.| Southwest Gas vs. NewJersey Resources | Southwest Gas vs. Northwest Natural Gas | Southwest Gas vs. NorthWestern | Southwest Gas vs. Chesapeake Utilities |
| Corus Entertainment vs. Kinetik Holdings | Corus Entertainment vs. AerSale Corp | Corus Entertainment vs. Southwest Gas Holdings | Corus Entertainment vs. Pentair PLC |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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