Southern Correlations

SO Stock

USD 89.13 0.61 0.68%

The current 90-days correlation between Southern and Dominion Energy is 0.76 (i.e., Poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Southern moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Southern Company moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Southern Correlation With Market

Good diversification

The correlation between Southern Company and DJI is -0.07 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Southern Company and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Southern Company. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons.

Moving together with Southern Stock

0.84	D	Dominion Energy	Pair Corr
0.76	ED	Consolidated Edison	Pair Corr
0.63	CMS-PB	Consumers Energy	Pair Corr
0.69	CMS-PC	CMS Energy	Pair Corr
0.87	CMS	CMS Energy	Pair Corr
0.78	DTE	DTE Energy	Pair Corr
0.78	DUK	Duke Energy Sell-off Trend	Pair Corr
0.82	EXC	Exelon	Pair Corr
0.62	NEE	Nextera Energy Aggressive Push	Pair Corr
0.65	POR	Portland General Electric	Pair Corr

Moving against Southern Stock

0.37

VSTEW

Vast Renewables

Pair Corr

Related Correlations Analysis

	D	AEP	NEE	ED	EIX	DUK	EXC
D		0.18	0.27	0.48	0.24	0.71	0.59	D
AEP	0.18		0.77	0.72	0.51	0.63	0.4	AEP
NEE	0.27	0.77		0.88	0.37	0.6	0.72	NEE
ED	0.48	0.72	0.88		0.44	0.77	0.67	ED
EIX	0.24	0.51	0.37	0.44		0.55	0.44	EIX
DUK	0.71	0.63	0.6	0.77	0.55		0.64	DUK
EXC	0.59	0.4	0.72	0.67	0.44	0.64		EXC
	D	AEP	NEE	ED	EIX	DUK	EXC

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Risk-Adjusted Indicators

There is a big difference between Southern Stock performing well and Southern Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Southern's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
D	0.96	0.10	(0.02)	3.15	1.12	(1.04)	1.83	(1.96)	7.68
AEP	0.88	0.06	(0.08)	(0.13)	1.21	(0.87)	1.58	(1.73)	6.17
NEE	1.12	0.03	(0.06)	(0.04)	1.90	(0.99)	1.77	(2.52)	7.75
ED	0.83	0.00	(0.11)	0.14	0.97	(0.85)	1.60	(1.66)	4.57
EIX	0.83	0.04	(0.07)	0.34	0.96	(0.85)	1.77	(1.59)	3.77
DUK	0.86	0.06	(0.05)	0.75	1.08	(0.91)	1.77	(2.24)	4.97
EXC	0.80	0.05	(0.05)	0.44	0.98	(0.82)	1.50	(1.66)	5.42

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