SO continues to mint money for it's investors

SO was among the best performers today. On a longer term basis, investors in SOUTHERN CO made -0.0% per day. Friday's performance of +0.99% was a significant outperformance compared to it's daily average.

[Themes containing SO]

SO showed a up trend over the last 3 months. During this period SO returned +5.91% . There was a long signal during this period which returned +5.55%.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

SO has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 3 days, SO underperformed the SP500 index on 50% days. Which indicates that on days SO underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months SO was mostly profitable and delivered on average +0.1% per day. It's best return during this period (of +2.93%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -2.51%) was on Tuesday, 25 Sep, 2018. There was initially a bearish trend during this period which started on 30 Oct, 2018 and went on till 2 Nov, 2018. The trend delivered -2.52% losses to investors. This was followed by a bullish trend that started on 27 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +3.98% to investors.

On monthly basis, SO delivered profits and losses in equal number of months. SO delivered profits less regularly than SP500 index. SO was also a more risky investment than SP500 index as it's worst month in the last year, Aug 2018, returned -9.92% compared to -7.28% returned by SP500 index in Oct 2018. SO had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both SO and SP500 index significantly outperform during months when quarterly/annual results are announced.

"The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.

SO is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in SO's volatility from 11 Sep, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that SO has significant positive skewness in it's return distribution. This indicates that investors can expect SO to recover from drawdowns quickly. Which makes SO a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in SO derivatives at this moment can consider 'Calendar Spread' options strategy to receive better risk-adjusted returns.

SO has more chance of extreme outcomes than the SP500 index. Therefore, SO must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than SO.

On a general note (since you are interested in SO), if you are evaluating SO as an investment candidate, then you should read about ~PACKAGING which has delivered similar performance and can help diversify your portfolio.