Correlation Between Jackson Financial and Towngas China
Can any of the company-specific risk be diversified away by investing in both Jackson Financial and Towngas China 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 Towngas China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jackson Financial and Towngas China, you can compare the effects of market volatilities on Jackson Financial and Towngas China 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 Towngas China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and Towngas China.
Diversification Opportunities for Jackson Financial and Towngas China
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jackson and Towngas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and Towngas China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Towngas China 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 Towngas China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Towngas China has no effect on the direction of Jackson Financial i.e., Jackson Financial and Towngas China go up and down completely randomly.
Pair Corralation between Jackson Financial and Towngas China
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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jackson Financial vs. Towngas China
Performance |
| Timeline |
| Jackson Financial |
| Towngas China |
Jackson Financial and Towngas China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and Towngas China
The main advantage of trading using opposite Jackson Financial and Towngas China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, Towngas China 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 Towngas China will offset losses from the drop in Towngas China's long position.| Jackson Financial vs. Asure Software | Jackson Financial vs. Assurant | Jackson Financial vs. Sun Life Financial | Jackson Financial vs. GoHealth |
| Towngas China vs. UGI Corporation | Towngas China vs. NewJersey Resources | Towngas China vs. Chesapeake Utilities | Towngas China vs. NiSource |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance |