Correlation Between SOUTHERN and Sprott Focus
Specify exactly 2 symbols:
By analyzing existing cross correlation between SOUTHERN CALIF GAS and Sprott Focus Trust, you can compare the effects of market volatilities on SOUTHERN and Sprott Focus 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 Sprott Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and Sprott Focus.
Diversification Opportunities for SOUTHERN and Sprott Focus
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between SOUTHERN and Sprott is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN CALIF GAS and Sprott Focus Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Focus Trust 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 GAS are associated (or correlated) with Sprott Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Focus Trust has no effect on the direction of SOUTHERN i.e., SOUTHERN and Sprott Focus go up and down completely randomly.
Pair Corralation between SOUTHERN and Sprott Focus
Assuming the 90 days trading horizon SOUTHERN CALIF GAS is expected to generate 119.47 times more return on investment than Sprott Focus. However, SOUTHERN is 119.47 times more volatile than Sprott Focus Trust. It trades about 0.12 of its potential returns per unit of risk. Sprott Focus Trust is currently generating about 0.03 per unit of risk. If you would invest 7,974 in SOUTHERN CALIF GAS on September 12, 2024 and sell it today you would earn a total of 602.00 from holding SOUTHERN CALIF GAS or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 56.97% |
| Values | Daily Returns |
SOUTHERN CALIF GAS vs. Sprott Focus Trust
Performance |
| Timeline |
| SOUTHERN CALIF GAS |
| Sprott Focus Trust |
SOUTHERN and Sprott Focus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and Sprott Focus
The main advantage of trading using opposite SOUTHERN and Sprott Focus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN position performs unexpectedly, Sprott Focus 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 Sprott Focus will offset losses from the drop in Sprott Focus' long position.| SOUTHERN vs. AEP TEX INC | SOUTHERN vs. US BANK NATIONAL | SOUTHERN vs. PayPal Holdings | SOUTHERN vs. Alphabet Inc Class C |
| Sprott Focus vs. MFS Investment Grade | Sprott Focus vs. Eaton Vance National | Sprott Focus vs. Nuveen California Select | Sprott Focus vs. Federated Premier Municipal |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |