Correlation Between Jackson Financial and CGG
Can any of the company-specific risk be diversified away by investing in both Jackson Financial and CGG 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 CGG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jackson Financial and CGG, you can compare the effects of market volatilities on Jackson Financial and CGG 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 CGG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and CGG.
Diversification Opportunities for Jackson Financial and CGG
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jackson and CGG is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and CGG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGG 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 CGG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGG has no effect on the direction of Jackson Financial i.e., Jackson Financial and CGG go up and down completely randomly.
Pair Corralation between Jackson Financial and CGG
If you would invest 2,678 in Jackson Financial on September 12, 2024 and sell it today you would earn a total of 7.00 from holding Jackson Financial or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Jackson Financial vs. CGG
Performance |
| Timeline |
| Jackson Financial |
| CGG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jackson Financial and CGG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and CGG
The main advantage of trading using opposite Jackson Financial and CGG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, CGG 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 CGG will offset losses from the drop in CGG's long position.| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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