Correlation Between Jackson Financial and 207597EH4
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By analyzing existing cross correlation between Jackson Financial and CONNECTICUT LT PWR, you can compare the effects of market volatilities on Jackson Financial and 207597EH4 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 207597EH4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and 207597EH4.
Diversification Opportunities for Jackson Financial and 207597EH4
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jackson and 207597EH4 is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and CONNECTICUT LT PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONNECTICUT LT PWR 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 207597EH4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONNECTICUT LT PWR has no effect on the direction of Jackson Financial i.e., Jackson Financial and 207597EH4 go up and down completely randomly.
Pair Corralation between Jackson Financial and 207597EH4
Assuming the 90 days trading horizon Jackson Financial is expected to generate 3.81 times less return on investment than 207597EH4. But when comparing it to its historical volatility, Jackson Financial is 2.94 times less risky than 207597EH4. It trades about 0.02 of its potential returns per unit of risk. CONNECTICUT LT PWR is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 8,405 in CONNECTICUT LT PWR on September 4, 2024 and sell it today you would earn a total of 29.00 from holding CONNECTICUT LT PWR or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Jackson Financial vs. CONNECTICUT LT PWR
Performance |
| Timeline |
| Jackson Financial |
| CONNECTICUT LT PWR |
Jackson Financial and 207597EH4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and 207597EH4
The main advantage of trading using opposite Jackson Financial and 207597EH4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, 207597EH4 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 207597EH4 will offset losses from the drop in 207597EH4's long position.| Jackson Financial vs. Asure Software | Jackson Financial vs. Assurant | Jackson Financial vs. Sun Life Financial | Jackson Financial vs. GoHealth |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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