Southern Correlations

SO Stock

USD 89.36 0.61 0.68%

The current 90-days correlation between Southern and Dominion Energy is 0.77 (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

Average diversification

The correlation between Southern Company and DJI is 0.1 (i.e., Average 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

0.74	D	Dominion Energy	Pair Corr
0.92	ED	Consolidated Edison	Pair Corr
0.84	ES	Eversource Energy	Pair Corr
0.8	HE	Hawaiian Electric	Pair Corr
0.65	CMS-PB	Consumers Energy	Pair Corr
0.88	ENIC	Enel Chile SA	Pair Corr
0.89	EVRG	Evergy,	Pair Corr
0.89	AEE	Ameren Corp	Pair Corr
0.93	AEP	American Electric Power	Pair Corr
0.94	CMS	CMS Energy	Pair Corr
0.93	CNP	CenterPoint Energy	Pair Corr
0.94	DTE	DTE Energy	Pair Corr
0.94	DUK	Duke Energy	Pair Corr
0.88	EBR	Centrais Electricas	Pair Corr
0.77	ETR	Entergy	Pair Corr
0.91	EXC	Exelon	Pair Corr
0.89	FTS	Fortis Inc	Pair Corr
0.89	IDA	IDACORP	Pair Corr
0.74	KEP	Korea Electric Power	Pair Corr
0.94	LNT	Alliant Energy Corp	Pair Corr
0.75	NGG	National Grid PLC	Pair Corr
0.9	OGE	OGE Energy	Pair Corr
0.95	PNW	Pinnacle West Capital	Pair Corr
0.65	POR	Portland General Electric	Pair Corr
0.9	PPL	PPL Corporation	Pair Corr
0.96	WEC	WEC Energy Group	Pair Corr
0.77	XEL	Xcel Energy	Pair Corr
0.83	DUK-PA	Duke Energy	Pair Corr

Moving against Southern Stock

0.9	VSTE	Vast Renewables	Pair Corr
0.66	EDN	Empresa Distribuidora	Pair Corr
0.61	EIX	Edison International	Pair Corr
0.53	CMS-PC	CMS Energy	Pair Corr
0.34	GNE	Genie Energy	Pair Corr
0.84	VSTEW	Vast Renewables	Pair Corr
0.64	PEG	Public Service Enterprise	Pair Corr
0.58	PCG-PE	Pacific Gas	Pair Corr
0.57	PCG-PC	Pacific Gas	Pair Corr
0.57	PCG-PD	Pacific Gas	Pair Corr
0.5	PCG	PGE Corp	Pair Corr
0.47	PCG-PI	Pacific Gas	Pair Corr
0.45	SCE-PG	SCE Trust II	Pair Corr
0.42	PCG-PG	Pacific Gas	Pair Corr
0.4	PCG-PH	Pacific Gas	Pair Corr
0.39	SCE-PL	SCE Trust VI	Pair Corr

Related Correlations Analysis

	D	AEP	NEE	ED	EIX	DUK	EXC
D		0.79	-0.02	0.57	-0.65	0.71	0.73	D
AEP	0.79		0.01	0.87	-0.83	0.94	0.96	AEP
NEE	-0.02	0.01		0.33	0.34	0.2	0.05	NEE
ED	0.57	0.87	0.33		-0.58	0.94	0.91	ED
EIX	-0.65	-0.83	0.34	-0.58		-0.7	-0.79	EIX
DUK	0.71	0.94	0.2	0.94	-0.7		0.93	DUK
EXC	0.73	0.96	0.05	0.91	-0.79	0.93		EXC
	D	AEP	NEE	ED	EIX	DUK	EXC

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

EXC	+ 0.96	AEP
DUK	+ 0.94	AEP
DUK	+ 0.94	ED
EXC	+ 0.93	DUK
EXC	+ 0.91	ED
ED	+ 0.87	AEP

High negative correlations

EIX	- 0.83	AEP
EXC	- 0.79	EIX
DUK	- 0.7	EIX
EIX	- 0.65	D
EIX	- 0.58	ED
NEE	- 0.02	D

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	1.06	0.07	0.06	0.18	1.98	(0.88)	2.39	(2.58)	8.67
AEP	0.94	0.22	0.21	2.58	1.07	(0.97)	1.98	(1.95)	7.23
NEE	1.38	(0.09)	0.00	0.11	0.00	0.00	3.01	(2.80)	9.68
ED	1.08	0.23	0.26	(2.01)	0.94	(1.28)	2.61	(1.91)	7.44
EIX	1.87	(0.47)	0.00	2.47	0.00	0.00	3.44	(6.33)	13.93
DUK	0.89	0.17	0.20	1.14	0.96	(0.93)	1.65	(1.90)	4.59
EXC	0.88	0.30	0.28	9.38	0.83	(0.91)	2.02	(1.95)	6.50

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