Correlation Between NYSE Composite and Jones Soda
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Jones Soda 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 NYSE Composite and Jones Soda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Jones Soda Co, you can compare the effects of market volatilities on NYSE Composite and Jones Soda 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 NYSE Composite with a short position of Jones Soda. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Jones Soda.
Diversification Opportunities for NYSE Composite and Jones Soda
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Jones is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Jones Soda Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jones Soda and NYSE Composite 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 NYSE Composite are associated (or correlated) with Jones Soda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jones Soda has no effect on the direction of NYSE Composite i.e., NYSE Composite and Jones Soda go up and down completely randomly.
Pair Corralation between NYSE Composite and Jones Soda
If you would invest 1,954,967 in NYSE Composite on August 27, 2024 and sell it today you would earn a total of 57,378 from holding NYSE Composite or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
NYSE Composite vs. Jones Soda Co
Performance |
| Timeline |
NYSE Composite and Jones Soda Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Jones Soda Co
Pair trading matchups for Jones Soda
Pair Trading with NYSE Composite and Jones Soda
The main advantage of trading using opposite NYSE Composite and Jones Soda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Jones Soda 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 Jones Soda will offset losses from the drop in Jones Soda's long position.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| Jones Soda vs. Zevia Pbc | Jones Soda vs. Hill Street Beverage | Jones Soda vs. Flow Beverage Corp | Jones Soda vs. Fbec Worldwide |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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