Correlation Between Jackson Financial and AMERICAN
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By analyzing existing cross correlation between Jackson Financial and AMERICAN EXPRESS 42, you can compare the effects of market volatilities on Jackson Financial and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and AMERICAN.
Diversification Opportunities for Jackson Financial and AMERICAN
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jackson and AMERICAN is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and AMERICAN EXPRESS 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS has no effect on the direction of Jackson Financial i.e., Jackson Financial and AMERICAN go up and down completely randomly.
Pair Corralation between Jackson Financial and AMERICAN
Assuming the 90 days trading horizon Jackson Financial is expected to generate 1.39 times more return on investment than AMERICAN. However, Jackson Financial is 1.39 times more volatile than AMERICAN EXPRESS 42. It trades about 0.02 of its potential returns per unit of risk. AMERICAN EXPRESS 42 is currently generating about -0.19 per unit of risk. 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 | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jackson Financial vs. AMERICAN EXPRESS 42
Performance |
| Timeline |
| Jackson Financial |
| AMERICAN EXPRESS |
Jackson Financial and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and AMERICAN
The main advantage of trading using opposite Jackson Financial and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's long position.| Jackson Financial vs. Asure Software | Jackson Financial vs. Assurant | Jackson Financial vs. Sun Life Financial | Jackson Financial vs. GoHealth |
| AMERICAN vs. AEP TEX INC | AMERICAN vs. US BANK NATIONAL | AMERICAN vs. Jackson Financial | AMERICAN vs. MetLife |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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