Correlation Between Jackson Financial and EDISON
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By analyzing existing cross correlation between Jackson Financial and EDISON INTL 4125, you can compare the effects of market volatilities on Jackson Financial and EDISON 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 EDISON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and EDISON.
Diversification Opportunities for Jackson Financial and EDISON
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jackson and EDISON is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and EDISON INTL 4125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDISON INTL 4125 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 EDISON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDISON INTL 4125 has no effect on the direction of Jackson Financial i.e., Jackson Financial and EDISON go up and down completely randomly.
Pair Corralation between Jackson Financial and EDISON
Assuming the 90 days trading horizon Jackson Financial is expected to generate 0.63 times more return on investment than EDISON. However, Jackson Financial is 1.58 times less risky than EDISON. It trades about 0.11 of its potential returns per unit of risk. EDISON INTL 4125 is currently generating about -0.09 per unit of risk. If you would invest 2,603 in Jackson Financial on September 12, 2024 and sell it today you would earn a total of 91.00 from holding Jackson Financial or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.31% |
| Values | Daily Returns |
Jackson Financial vs. EDISON INTL 4125
Performance |
| Timeline |
| Jackson Financial |
| EDISON INTL 4125 |
Jackson Financial and EDISON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and EDISON
The main advantage of trading using opposite Jackson Financial and EDISON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, EDISON 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 EDISON will offset losses from the drop in EDISON's long position.| Jackson Financial vs. Employers Holdings | Jackson Financial vs. Brandywine Realty Trust | Jackson Financial vs. Monster Beverage Corp | Jackson Financial vs. Primo Brands |
| EDISON vs. WiMi Hologram Cloud | EDISON vs. SunLink Health Systems | EDISON vs. Weibo Corp | EDISON vs. Iridium Communications |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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