Correlation Between Jackson Financial and Archon
Can any of the company-specific risk be diversified away by investing in both Jackson Financial and Archon 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 Jackson Financial and Archon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jackson Financial and Archon, you can compare the effects of market volatilities on Jackson Financial and Archon 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 Jackson Financial with a short position of Archon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and Archon.
Diversification Opportunities for Jackson Financial and Archon
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jackson and Archon is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and Archon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Archon and Jackson Financial 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 Jackson Financial are associated (or correlated) with Archon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Archon has no effect on the direction of Jackson Financial i.e., Jackson Financial and Archon go up and down completely randomly.
Pair Corralation between Jackson Financial and Archon
Assuming the 90 days trading horizon Jackson Financial is expected to generate 0.2 times more return on investment than Archon. However, Jackson Financial is 4.9 times less risky than Archon. It trades about 0.11 of its potential returns per unit of risk. Archon is currently generating about -0.15 per unit of risk. If you would invest 2,603 in Jackson Financial on September 12, 2024 and sell it today you would earn a total of 91.00 from holding Jackson Financial or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jackson Financial vs. Archon
Performance |
| Timeline |
| Jackson Financial |
| Archon |
Jackson Financial and Archon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and Archon
The main advantage of trading using opposite Jackson Financial and Archon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, Archon 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 Archon will offset losses from the drop in Archon's long position.| Jackson Financial vs. Employers Holdings | Jackson Financial vs. Brandywine Realty Trust | Jackson Financial vs. Monster Beverage Corp | Jackson Financial vs. Primo Brands |
| Archon vs. Century Casinos | Archon vs. Golden Entertainment | Archon vs. Monarch Casino Resort | Archon vs. Red Rock Resorts |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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