Correlation Between Jackson Financial and Mango Capital
Can any of the company-specific risk be diversified away by investing in both Jackson Financial and Mango Capital 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 Mango Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jackson Financial and Mango Capital, you can compare the effects of market volatilities on Jackson Financial and Mango Capital 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 Mango Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and Mango Capital.
Diversification Opportunities for Jackson Financial and Mango Capital
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jackson and Mango is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and Mango Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mango Capital 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 Mango Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mango Capital has no effect on the direction of Jackson Financial i.e., Jackson Financial and Mango Capital go up and down completely randomly.
Pair Corralation between Jackson Financial and Mango Capital
Assuming the 90 days trading horizon Jackson Financial is expected to generate 0.24 times more return on investment than Mango Capital. However, Jackson Financial is 4.14 times less risky than Mango Capital. It trades about 0.09 of its potential returns per unit of risk. Mango Capital is currently generating about -0.1 per unit of risk. If you would invest 2,219 in Jackson Financial on September 12, 2024 and sell it today you would earn a total of 466.00 from holding Jackson Financial or generate 21.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 56.53% |
| Values | Daily Returns |
Jackson Financial vs. Mango Capital
Performance |
| Timeline |
| Jackson Financial |
| Mango Capital |
Jackson Financial and Mango Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and Mango Capital
The main advantage of trading using opposite Jackson Financial and Mango Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, Mango Capital 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 Mango Capital will offset losses from the drop in Mango Capital's long position.| Jackson Financial vs. Everus Construction Group | Jackson Financial vs. EMCOR Group | Jackson Financial vs. Plexus Corp | Jackson Financial vs. ChampionX |
| Mango Capital vs. Shopify | Mango Capital vs. Docebo Inc | Mango Capital vs. Unity Software | Mango Capital vs. Fastly Inc |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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