Correlation Between SOUTHERN and United States
Specify exactly 2 symbols:
By analyzing existing cross correlation between SOUTHERN CALIF EDISON and United States Steel, you can compare the effects of market volatilities on SOUTHERN and United States 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 SOUTHERN with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and United States.
Diversification Opportunities for SOUTHERN and United States
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SOUTHERN and United is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN CALIF EDISON and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel and SOUTHERN 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 SOUTHERN CALIF EDISON are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of SOUTHERN i.e., SOUTHERN and United States go up and down completely randomly.
Pair Corralation between SOUTHERN and United States
Assuming the 90 days trading horizon SOUTHERN CALIF EDISON is expected to generate 0.26 times more return on investment than United States. However, SOUTHERN CALIF EDISON is 3.79 times less risky than United States. It trades about -0.01 of its potential returns per unit of risk. United States Steel is currently generating about -0.04 per unit of risk. If you would invest 10,896 in SOUTHERN CALIF EDISON on September 12, 2024 and sell it today you would lose (171.00) from holding SOUTHERN CALIF EDISON or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.98% |
| Values | Daily Returns |
SOUTHERN CALIF EDISON vs. United States Steel
Performance |
| Timeline |
| SOUTHERN CALIF EDISON |
| United States Steel |
SOUTHERN and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and United States
The main advantage of trading using opposite SOUTHERN and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| SOUTHERN vs. United States Steel | SOUTHERN vs. Kaltura | SOUTHERN vs. Infosys Ltd ADR | SOUTHERN vs. Sapiens International |
| United States vs. Nucor Corp | United States vs. Steel Dynamics | United States vs. ArcelorMittal SA ADR | United States vs. Gerdau SA ADR |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |