Correlation Between Assurant and Jackson Financial
Can any of the company-specific risk be diversified away by investing in both Assurant and Jackson Financial 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 Assurant and Jackson Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assurant and Jackson Financial, you can compare the effects of market volatilities on Assurant and Jackson Financial 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 Assurant with a short position of Jackson Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assurant and Jackson Financial.
Diversification Opportunities for Assurant and Jackson Financial
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Assurant and Jackson is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Assurant and Jackson Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackson Financial and Assurant 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 Assurant are associated (or correlated) with Jackson Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackson Financial has no effect on the direction of Assurant i.e., Assurant and Jackson Financial go up and down completely randomly.
Pair Corralation between Assurant and Jackson Financial
Considering the 90-day investment horizon Assurant is expected to generate 2.12 times more return on investment than Jackson Financial. However, Assurant is 2.12 times more volatile than Jackson Financial. It trades about 0.14 of its potential returns per unit of risk. Jackson Financial is currently generating about 0.03 per unit of risk. If you would invest 20,998 in Assurant on September 12, 2024 and sell it today you would earn a total of 633.00 from holding Assurant or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Assurant vs. Jackson Financial
Performance |
| Timeline |
| Assurant |
| Jackson Financial |
Assurant and Jackson Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assurant and Jackson Financial
The main advantage of trading using opposite Assurant and Jackson Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assurant position performs unexpectedly, Jackson Financial 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 Jackson Financial will offset losses from the drop in Jackson Financial's long position.| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact Holdings |
| Jackson Financial vs. Everus Construction Group | Jackson Financial vs. EMCOR Group | Jackson Financial vs. Plexus Corp | Jackson Financial vs. ChampionX |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |