Correlation Between NYSE Composite and South Jersey
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and South Jersey 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 South Jersey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and South Jersey Industries, you can compare the effects of market volatilities on NYSE Composite and South Jersey 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 South Jersey. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and South Jersey.
Diversification Opportunities for NYSE Composite and South Jersey
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and South is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and South Jersey Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on South Jersey Industries 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 South Jersey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of South Jersey Industries has no effect on the direction of NYSE Composite i.e., NYSE Composite and South Jersey go up and down completely randomly.
Pair Corralation between NYSE Composite and South Jersey
If you would invest 1,804,550 in NYSE Composite on September 3, 2024 and sell it today you would earn a total of 222,654 from holding NYSE Composite or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
NYSE Composite vs. South Jersey Industries
Performance |
| Timeline |
NYSE Composite and South Jersey Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
South Jersey Industries
Pair trading matchups for South Jersey
Pair Trading with NYSE Composite and South Jersey
The main advantage of trading using opposite NYSE Composite and South Jersey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, South Jersey 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 South Jersey will offset losses from the drop in South Jersey's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| South Jersey vs. Semtech | South Jersey vs. SunOpta | South Jersey vs. Hf Foods Group | South Jersey vs. Bel Fuse A |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |