Correlation Between Southwest Gas and STCITY
Specify exactly 2 symbols:
By analyzing existing cross correlation between Southwest Gas Holdings and STCITY 65 15 JAN 28, you can compare the effects of market volatilities on Southwest Gas and STCITY 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 STCITY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southwest Gas and STCITY.
Diversification Opportunities for Southwest Gas and STCITY
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Southwest and STCITY is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Southwest Gas Holdings and STCITY 65 15 JAN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STCITY 65 15 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 STCITY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STCITY 65 15 has no effect on the direction of Southwest Gas i.e., Southwest Gas and STCITY go up and down completely randomly.
Pair Corralation between Southwest Gas and STCITY
Considering the 90-day investment horizon Southwest Gas Holdings is expected to generate 2.86 times more return on investment than STCITY. However, Southwest Gas is 2.86 times more volatile than STCITY 65 15 JAN 28. It trades about 0.03 of its potential returns per unit of risk. STCITY 65 15 JAN 28 is currently generating about 0.01 per unit of risk. If you would invest 7,389 in Southwest Gas Holdings on September 3, 2024 and sell it today you would earn a total of 427.00 from holding Southwest Gas Holdings or generate 5.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 53.42% |
| Values | Daily Returns |
Southwest Gas Holdings vs. STCITY 65 15 JAN 28
Performance |
| Timeline |
| Southwest Gas Holdings |
| STCITY 65 15 |
Southwest Gas and STCITY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southwest Gas and STCITY
The main advantage of trading using opposite Southwest Gas and STCITY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southwest Gas position performs unexpectedly, STCITY 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 STCITY will offset losses from the drop in STCITY's long position.| Southwest Gas vs. NewJersey Resources | Southwest Gas vs. Northwest Natural Gas | Southwest Gas vs. NorthWestern | Southwest Gas vs. Chesapeake Utilities |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| 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 |