Correlation Between SOUTHERN and Marine Products
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By analyzing existing cross correlation between SOUTHERN CALIF EDISON and Marine Products, you can compare the effects of market volatilities on SOUTHERN and Marine Products 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 Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and Marine Products.
Diversification Opportunities for SOUTHERN and Marine Products
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SOUTHERN and Marine is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN CALIF EDISON and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products 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 Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of SOUTHERN i.e., SOUTHERN and Marine Products go up and down completely randomly.
Pair Corralation between SOUTHERN and Marine Products
Assuming the 90 days trading horizon SOUTHERN is expected to generate 2.18 times less return on investment than Marine Products. But when comparing it to its historical volatility, SOUTHERN CALIF EDISON is 1.99 times less risky than Marine Products. It trades about 0.13 of its potential returns per unit of risk. Marine Products is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 930.00 in Marine Products on September 5, 2024 and sell it today you would earn a total of 50.00 from holding Marine Products or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
SOUTHERN CALIF EDISON vs. Marine Products
Performance |
| Timeline |
| SOUTHERN CALIF EDISON |
| Marine Products |
SOUTHERN and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and Marine Products
The main advantage of trading using opposite SOUTHERN and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.| SOUTHERN vs. Ainsworth Game Technology | SOUTHERN vs. Xponential Fitness | SOUTHERN vs. Wicket Gaming AB | SOUTHERN vs. Marine Products |
| Marine Products vs. Thor Industries | Marine Products vs. EZGO Technologies | Marine Products vs. Polaris Industries | Marine Products vs. LCI Industries |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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