Correlation Between Sempra Energy and OGE Energy
Can any of the company-specific risk be diversified away by investing in both Sempra Energy and OGE 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 Sempra Energy and OGE Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sempra Energy and OGE Energy, you can compare the effects of market volatilities on Sempra Energy and OGE 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 Sempra Energy with a short position of OGE Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sempra Energy and OGE Energy.
Diversification Opportunities for Sempra Energy and OGE Energy
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sempra and OGE is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sempra Energy and OGE Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OGE Energy and Sempra Energy 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 Sempra Energy are associated (or correlated) with OGE Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OGE Energy has no effect on the direction of Sempra Energy i.e., Sempra Energy and OGE Energy go up and down completely randomly.
Pair Corralation between Sempra Energy and OGE Energy
Considering the 90-day investment horizon Sempra Energy is expected to generate 1.37 times more return on investment than OGE Energy. However, Sempra Energy is 1.37 times more volatile than OGE Energy. It trades about -0.01 of its potential returns per unit of risk. OGE Energy is currently generating about -0.08 per unit of risk. If you would invest 9,000 in Sempra Energy on October 6, 2025 and sell it today you would lose (29.00) from holding Sempra Energy or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sempra Energy vs. OGE Energy
Performance |
| Timeline |
| Sempra Energy |
| OGE Energy |
Sempra Energy and OGE Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sempra Energy and OGE Energy
The main advantage of trading using opposite Sempra Energy and OGE Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sempra Energy position performs unexpectedly, OGE 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 OGE Energy will offset losses from the drop in OGE Energy's long position.| Sempra Energy vs. American Electric Power | Sempra Energy vs. Vistra Energy Corp | Sempra Energy vs. Dominion Energy | Sempra Energy vs. Xcel Energy |
| OGE Energy vs. Pinnacle West Capital | OGE Energy vs. CMS Energy | OGE Energy vs. IDACORP | OGE Energy vs. Essential Utilities |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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