Correlation Between Jackson Financial and Polymeric Resources
Can any of the company-specific risk be diversified away by investing in both Jackson Financial and Polymeric Resources 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 Polymeric Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jackson Financial and Polymeric Resources, you can compare the effects of market volatilities on Jackson Financial and Polymeric Resources 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 Polymeric Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and Polymeric Resources.
Diversification Opportunities for Jackson Financial and Polymeric Resources
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jackson and Polymeric is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and Polymeric Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polymeric Resources 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 Polymeric Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polymeric Resources has no effect on the direction of Jackson Financial i.e., Jackson Financial and Polymeric Resources go up and down completely randomly.
Pair Corralation between Jackson Financial and Polymeric Resources
If you would invest 2,724 in Jackson Financial on September 4, 2024 and sell it today you would earn a total of 6.00 from holding Jackson Financial or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jackson Financial vs. Polymeric Resources
Performance |
| Timeline |
| Jackson Financial |
| Polymeric Resources |
Jackson Financial and Polymeric Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and Polymeric Resources
The main advantage of trading using opposite Jackson Financial and Polymeric Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, Polymeric Resources 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 Polymeric Resources will offset losses from the drop in Polymeric Resources' long position.| Jackson Financial vs. Asure Software | Jackson Financial vs. Assurant | Jackson Financial vs. Sun Life Financial | Jackson Financial vs. GoHealth |
| Polymeric Resources vs. Celanese | Polymeric Resources vs. Huntsman | Polymeric Resources vs. BASF SE ADR | Polymeric Resources vs. Tronox Holdings PLC |
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 CEOs Directory module to screen CEOs from public companies around the world.
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