Correlation Between SOUTHERN and Altria
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By analyzing existing cross correlation between SOUTHERN 425 percent and Altria Group, you can compare the effects of market volatilities on SOUTHERN and Altria 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 Altria. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and Altria.
Diversification Opportunities for SOUTHERN and Altria
Very good diversification
The 3 months correlation between SOUTHERN and Altria is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN 425 percent and Altria Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altria Group 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 425 percent are associated (or correlated) with Altria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altria Group has no effect on the direction of SOUTHERN i.e., SOUTHERN and Altria go up and down completely randomly.
Pair Corralation between SOUTHERN and Altria
Assuming the 90 days trading horizon SOUTHERN is expected to generate 1.44 times less return on investment than Altria. But when comparing it to its historical volatility, SOUTHERN 425 percent is 1.05 times less risky than Altria. It trades about 0.11 of its potential returns per unit of risk. Altria Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5,393 in Altria Group on September 12, 2024 and sell it today you would earn a total of 156.00 from holding Altria Group or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOUTHERN 425 percent vs. Altria Group
Performance |
| Timeline |
| SOUTHERN 425 percent |
| Altria Group |
SOUTHERN and Altria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and Altria
The main advantage of trading using opposite SOUTHERN and Altria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN position performs unexpectedly, Altria 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 Altria will offset losses from the drop in Altria's long position.| SOUTHERN vs. Sealed Air | SOUTHERN vs. CF Industries Holdings | SOUTHERN vs. NL Industries | SOUTHERN vs. The Mosaic |
| Altria vs. British American Tobacco | Altria vs. Universal | Altria vs. Imperial Brands PLC | Altria vs. Philip Morris International |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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