Correlation Between Southern Concepts and Strattner Financial

Can any of the company-specific risk be diversified away by investing in both Southern Concepts and Strattner Financial 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 Southern Concepts and Strattner Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Southern Concepts Restaurant and Strattner Financial Group, you can compare the effects of market volatilities on Southern Concepts and Strattner Financial 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 Concepts with a short position of Strattner Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Concepts and Strattner Financial.

Diversification Opportunities for Southern Concepts and Strattner Financial

1.0

Correlation Coefficient

Southern Concepts  Strattner Financial

No risk reduction

The 3 months correlation between Southern and Strattner is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Southern Concepts Restaurant and Strattner Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strattner Financial and Southern Concepts 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 Concepts Restaurant are associated (or correlated) with Strattner Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strattner Financial has no effect on the direction of Southern Concepts i.e., Southern Concepts and Strattner Financial go up and down completely randomly.

Pair Corralation between Southern Concepts and Strattner Financial

If you would invest  0.01  in Strattner Financial Group on May 26, 2025 and sell it today you would earn a total of  0.00  from holding Strattner Financial Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.46%
Values	Daily Returns

Southern Concepts Restaurant  vs.  Strattner Financial Group

Southern Concepts

Risk-Adjusted Performance

Weakest

Over the last 90 days Southern Concepts Restaurant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Southern Concepts is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Strattner Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days Strattner Financial Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Strattner Financial is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Southern Concepts and Strattner Financial

The main advantage of trading using opposite Southern Concepts and Strattner Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Concepts position performs unexpectedly, Strattner Financial 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 Strattner Financial will offset losses from the drop in Strattner Financial's long position.

The idea behind Southern Concepts Restaurant and Strattner Financial Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.