Correlation Between SOUTHERN and Bank of New York
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By analyzing existing cross correlation between SOUTHERN CALIF EDISON and Bank of New, you can compare the effects of market volatilities on SOUTHERN and Bank of New York 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 Bank of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and Bank of New York.
Diversification Opportunities for SOUTHERN and Bank of New York
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SOUTHERN and Bank is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN CALIF EDISON and Bank of New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of New York 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 Bank of New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of New York has no effect on the direction of SOUTHERN i.e., SOUTHERN and Bank of New York go up and down completely randomly.
Pair Corralation between SOUTHERN and Bank of New York
Assuming the 90 days trading horizon SOUTHERN is expected to generate 3.52 times less return on investment than Bank of New York. In addition to that, SOUTHERN is 1.07 times more volatile than Bank of New. It trades about 0.05 of its total potential returns per unit of risk. Bank of New is currently generating about 0.18 per unit of volatility. If you would invest 4,210 in Bank of New on September 12, 2024 and sell it today you would earn a total of 3,746 from holding Bank of New or generate 88.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 65.86% |
| Values | Daily Returns |
SOUTHERN CALIF EDISON vs. Bank of New
Performance |
| Timeline |
| SOUTHERN CALIF EDISON |
| Bank of New York |
SOUTHERN and Bank of New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and Bank of New York
The main advantage of trading using opposite SOUTHERN and Bank of New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN position performs unexpectedly, Bank of New York 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 Bank of New York will offset losses from the drop in Bank of New York's long position.| SOUTHERN vs. Bank of New | SOUTHERN vs. Village Super Market | SOUTHERN vs. Logan Ridge Finance | SOUTHERN vs. Xiabuxiabu Catering Management |
| Bank of New York vs. Northern Trust | Bank of New York vs. Invesco Plc | Bank of New York vs. Franklin Resources | Bank of New York vs. T Rowe Price |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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