Correlation Between SCANA and Sempra Energy
Can any of the company-specific risk be diversified away by investing in both SCANA and Sempra Energy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SCANA and Sempra Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANA and Sempra Energy, you can compare the effects of market volatilities on SCANA and Sempra Energy 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 SCANA with a short position of Sempra Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANA and Sempra Energy.
Diversification Opportunities for SCANA and Sempra Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCANA and Sempra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SCANA and Sempra Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sempra Energy and SCANA 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 SCANA are associated (or correlated) with Sempra Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sempra Energy has no effect on the direction of SCANA i.e., SCANA and Sempra Energy go up and down completely randomly.
Pair Corralation between SCANA and Sempra Energy
If you would invest 6,992 in Sempra Energy on January 21, 2024 and sell it today you would earn a total of 16.00 from holding Sempra Energy or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SCANA vs. Sempra Energy
Performance |
| Timeline |
| SCANA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sempra Energy |
SCANA and Sempra Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANA and Sempra Energy
The main advantage of trading using opposite SCANA and Sempra Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANA position performs unexpectedly, Sempra Energy 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 Sempra Energy will offset losses from the drop in Sempra Energy's long position.| SCANA vs. Tyson Foods | SCANA vs. Western Asset Investment | SCANA vs. Bank of America | SCANA vs. MGIC Investment Corp |
| Sempra Energy vs. Allete Inc | Sempra Energy vs. Black Hills | Sempra Energy vs. Otter Tail | Sempra Energy vs. Companhia Paranaense de |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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