Correlation Between Jackson Financial and Brera Holdings
Can any of the company-specific risk be diversified away by investing in both Jackson Financial and Brera Holdings 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 Brera Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jackson Financial and Brera Holdings PLC, you can compare the effects of market volatilities on Jackson Financial and Brera Holdings 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 Brera Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and Brera Holdings.
Diversification Opportunities for Jackson Financial and Brera Holdings
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jackson and Brera is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and Brera Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brera Holdings PLC 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 Brera Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brera Holdings PLC has no effect on the direction of Jackson Financial i.e., Jackson Financial and Brera Holdings go up and down completely randomly.
Pair Corralation between Jackson Financial and Brera Holdings
Assuming the 90 days trading horizon Jackson Financial is expected to generate 6.6 times less return on investment than Brera Holdings. But when comparing it to its historical volatility, Jackson Financial is 16.73 times less risky than Brera Holdings. It trades about 0.18 of its potential returns per unit of risk. Brera Holdings PLC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 71.00 in Brera Holdings PLC on September 3, 2024 and sell it today you would earn a total of 14.00 from holding Brera Holdings PLC or generate 19.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jackson Financial vs. Brera Holdings PLC
Performance |
| Timeline |
| Jackson Financial |
| Brera Holdings PLC |
Jackson Financial and Brera Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and Brera Holdings
The main advantage of trading using opposite Jackson Financial and Brera Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, Brera Holdings 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 Brera Holdings will offset losses from the drop in Brera Holdings' long position.| Jackson Financial vs. Analog Devices | Jackson Financial vs. Tencent Music Entertainment | Jackson Financial vs. RBC Bearings Incorporated | Jackson Financial vs. BioNTech SE |
| Brera Holdings vs. Reading International B | Brera Holdings vs. Marcus | Brera Holdings vs. Reading International | Brera Holdings vs. LiveOne |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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