Correlation Between Eline Entertainment and Jackson Financial
Can any of the company-specific risk be diversified away by investing in both Eline Entertainment 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 Eline Entertainment and Jackson Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eline Entertainment Group and Jackson Financial, you can compare the effects of market volatilities on Eline Entertainment 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 Eline Entertainment with a short position of Jackson Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eline Entertainment and Jackson Financial.
Diversification Opportunities for Eline Entertainment and Jackson Financial
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eline and Jackson is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Eline Entertainment Group and Jackson Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackson Financial and Eline Entertainment 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 Eline Entertainment Group 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 Eline Entertainment i.e., Eline Entertainment and Jackson Financial go up and down completely randomly.
Pair Corralation between Eline Entertainment and Jackson Financial
Given the investment horizon of 90 days Eline Entertainment Group is expected to generate 26.54 times more return on investment than Jackson Financial. However, Eline Entertainment is 26.54 times more volatile than Jackson Financial. It trades about 0.11 of its potential returns per unit of risk. Jackson Financial is currently generating about 0.05 per unit of risk. If you would invest 0.04 in Eline Entertainment Group on September 12, 2024 and sell it today you would lose (0.02) from holding Eline Entertainment Group or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.28% |
| Values | Daily Returns |
Eline Entertainment Group vs. Jackson Financial
Performance |
| Timeline |
| Eline Entertainment |
| Jackson Financial |
Eline Entertainment and Jackson Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eline Entertainment and Jackson Financial
The main advantage of trading using opposite Eline Entertainment and Jackson Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eline Entertainment 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.| Eline Entertainment vs. Roku Inc | Eline Entertainment vs. SNM Gobal Holdings | Eline Entertainment vs. Seven Arts Entertainment | Eline Entertainment vs. All For One |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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