Correlation Between CDW Corp and Jackson Financial
Can any of the company-specific risk be diversified away by investing in both CDW Corp 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 CDW Corp and Jackson Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDW Corp and Jackson Financial, you can compare the effects of market volatilities on CDW Corp 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 CDW Corp with a short position of Jackson Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDW Corp and Jackson Financial.
Diversification Opportunities for CDW Corp and Jackson Financial
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CDW and Jackson is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding CDW Corp and Jackson Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackson Financial and CDW Corp 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 CDW Corp 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 CDW Corp i.e., CDW Corp and Jackson Financial go up and down completely randomly.
Pair Corralation between CDW Corp and Jackson Financial
Considering the 90-day investment horizon CDW Corp is expected to under-perform the Jackson Financial. In addition to that, CDW Corp is 2.57 times more volatile than Jackson Financial. It trades about -0.04 of its total potential returns per unit of risk. Jackson Financial is currently generating about 0.09 per unit of volatility. If you would invest 2,327 in Jackson Financial on September 14, 2024 and sell it today you would earn a total of 360.00 from holding Jackson Financial or generate 15.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
CDW Corp vs. Jackson Financial
Performance |
| Timeline |
| CDW Corp |
| Jackson Financial |
CDW Corp and Jackson Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDW Corp and Jackson Financial
The main advantage of trading using opposite CDW Corp and Jackson Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDW Corp 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.| CDW Corp vs. CACI International | CDW Corp vs. Jack Henry Associates | CDW Corp vs. Broadridge Financial Solutions | CDW Corp vs. ExlService Holdings |
| Jackson Financial vs. CDW Corp | Jackson Financial vs. World Houseware Limited | Jackson Financial vs. Q2 Holdings | Jackson Financial vs. Steven Madden |
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.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |