Correlation Between Jackson Financial and SNM Gobal
Can any of the company-specific risk be diversified away by investing in both Jackson Financial and SNM Gobal 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 SNM Gobal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jackson Financial and SNM Gobal Holdings, you can compare the effects of market volatilities on Jackson Financial and SNM Gobal 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 SNM Gobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and SNM Gobal.
Diversification Opportunities for Jackson Financial and SNM Gobal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jackson and SNM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and SNM Gobal Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNM Gobal Holdings 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 SNM Gobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNM Gobal Holdings has no effect on the direction of Jackson Financial i.e., Jackson Financial and SNM Gobal go up and down completely randomly.
Pair Corralation between Jackson Financial and SNM Gobal
Assuming the 90 days trading horizon Jackson Financial is expected to generate 31.17 times less return on investment than SNM Gobal. But when comparing it to its historical volatility, Jackson Financial is 34.6 times less risky than SNM Gobal. It trades about 0.09 of its potential returns per unit of risk. SNM Gobal Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.03 in SNM Gobal Holdings on September 12, 2024 and sell it today you would lose (0.02) from holding SNM Gobal Holdings or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jackson Financial vs. SNM Gobal Holdings
Performance |
| Timeline |
| Jackson Financial |
| SNM Gobal Holdings |
Jackson Financial and SNM Gobal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and SNM Gobal
The main advantage of trading using opposite Jackson Financial and SNM Gobal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, SNM Gobal 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 SNM Gobal will offset losses from the drop in SNM Gobal's long position.| Jackson Financial vs. Everus Construction Group | Jackson Financial vs. EMCOR Group | Jackson Financial vs. Plexus Corp | Jackson Financial vs. ChampionX |
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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 Valuation module to check real value of public entities based on technical and fundamental data.
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