Correlation Between NYSE Composite and JM Smucker
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and JM Smucker 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 JM Smucker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and JM Smucker, you can compare the effects of market volatilities on NYSE Composite and JM Smucker 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 JM Smucker. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and JM Smucker.
Diversification Opportunities for NYSE Composite and JM Smucker
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and SJM is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and JM Smucker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JM Smucker 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 JM Smucker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JM Smucker has no effect on the direction of NYSE Composite i.e., NYSE Composite and JM Smucker go up and down completely randomly.
Pair Corralation between NYSE Composite and JM Smucker
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.44 times more return on investment than JM Smucker. However, NYSE Composite is 2.29 times less risky than JM Smucker. It trades about 0.32 of its potential returns per unit of risk. JM Smucker is currently generating about -0.06 per unit of risk. If you would invest 1,924,074 in NYSE Composite on November 9, 2024 and sell it today you would earn a total of 91,684 from holding NYSE Composite or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. JM Smucker
Performance |
| Timeline |
NYSE Composite and JM Smucker Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
JM Smucker
Pair trading matchups for JM Smucker
Pair Trading with NYSE Composite and JM Smucker
The main advantage of trading using opposite NYSE Composite and JM Smucker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, JM Smucker 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 JM Smucker will offset losses from the drop in JM Smucker's long position.| NYSE Composite vs. Integrated Media Technology | NYSE Composite vs. Custom Truck One | NYSE Composite vs. Funko Inc | NYSE Composite vs. Multi Ways Holdings |
| JM Smucker vs. ConAgra Foods | JM Smucker vs. Kellanova | JM Smucker vs. General Mills | JM Smucker vs. Hormel Foods |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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