Correlation Between South Jersey and PGE Corp
Can any of the company-specific risk be diversified away by investing in both South Jersey and PGE Corp 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 South Jersey and PGE Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between South Jersey Industries and PGE Corp, you can compare the effects of market volatilities on South Jersey and PGE Corp 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 South Jersey with a short position of PGE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of South Jersey and PGE Corp.
Diversification Opportunities for South Jersey and PGE Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between South and PGE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding South Jersey Industries and PGE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGE Corp and South Jersey 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 South Jersey Industries are associated (or correlated) with PGE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGE Corp has no effect on the direction of South Jersey i.e., South Jersey and PGE Corp go up and down completely randomly.
Pair Corralation between South Jersey and PGE Corp
If you would invest (100.00) in PGE Corp on January 8, 2025 and sell it today you would earn a total of 100.00 from holding PGE Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
South Jersey Industries vs. PGE Corp
Performance |
| Timeline |
| South Jersey Industries |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| PGE Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
South Jersey and PGE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with South Jersey and PGE Corp
The main advantage of trading using opposite South Jersey and PGE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if South Jersey position performs unexpectedly, PGE Corp 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 PGE Corp will offset losses from the drop in PGE Corp's long position.| South Jersey vs. Kaltura | South Jersey vs. Pinterest | South Jersey vs. The Andersons | South Jersey vs. CDW Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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