Correlation Between Southwest Gas and MQGAU
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By analyzing existing cross correlation between Southwest Gas Holdings and MQGAU 6798 18 JAN 33, you can compare the effects of market volatilities on Southwest Gas and MQGAU 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 MQGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southwest Gas and MQGAU.
Diversification Opportunities for Southwest Gas and MQGAU
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Southwest and MQGAU is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Southwest Gas Holdings and MQGAU 6798 18 JAN 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQGAU 6798 18 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 MQGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQGAU 6798 18 has no effect on the direction of Southwest Gas i.e., Southwest Gas and MQGAU go up and down completely randomly.
Pair Corralation between Southwest Gas and MQGAU
Considering the 90-day investment horizon Southwest Gas Holdings is expected to generate 1.21 times more return on investment than MQGAU. However, Southwest Gas is 1.21 times more volatile than MQGAU 6798 18 JAN 33. It trades about 0.05 of its potential returns per unit of risk. MQGAU 6798 18 JAN 33 is currently generating about -0.04 per unit of risk. If you would invest 7,285 in Southwest Gas Holdings on September 5, 2024 and sell it today you would earn a total of 515.00 from holding Southwest Gas Holdings or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 34.4% |
| Values | Daily Returns |
Southwest Gas Holdings vs. MQGAU 6798 18 JAN 33
Performance |
| Timeline |
| Southwest Gas Holdings |
| MQGAU 6798 18 |
Southwest Gas and MQGAU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southwest Gas and MQGAU
The main advantage of trading using opposite Southwest Gas and MQGAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southwest Gas position performs unexpectedly, MQGAU 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 MQGAU will offset losses from the drop in MQGAU's long position.| Southwest Gas vs. NewJersey Resources | Southwest Gas vs. Northwest Natural Gas | Southwest Gas vs. NorthWestern | Southwest Gas vs. Chesapeake Utilities |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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