Correlation Between Jackson Financial and NISOURCE
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By analyzing existing cross correlation between Jackson Financial and NISOURCE FIN P, you can compare the effects of market volatilities on Jackson Financial and NISOURCE 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 NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and NISOURCE.
Diversification Opportunities for Jackson Financial and NISOURCE
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jackson and NISOURCE is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and NISOURCE FIN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISOURCE FIN P 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 NISOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISOURCE FIN P has no effect on the direction of Jackson Financial i.e., Jackson Financial and NISOURCE go up and down completely randomly.
Pair Corralation between Jackson Financial and NISOURCE
Assuming the 90 days trading horizon Jackson Financial is expected to generate 0.3 times more return on investment than NISOURCE. However, Jackson Financial is 3.33 times less risky than NISOURCE. It trades about 0.04 of its potential returns per unit of risk. NISOURCE FIN P is currently generating about -0.08 per unit of risk. If you would invest 2,724 in Jackson Financial on September 5, 2024 and sell it today you would earn a total of 13.00 from holding Jackson Financial or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Jackson Financial vs. NISOURCE FIN P
Performance |
| Timeline |
| Jackson Financial |
| NISOURCE FIN P |
Jackson Financial and NISOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and NISOURCE
The main advantage of trading using opposite Jackson Financial and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, NISOURCE 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 NISOURCE will offset losses from the drop in NISOURCE's long position.| Jackson Financial vs. NRG Energy | Jackson Financial vs. United Utilities Group | Jackson Financial vs. Aris Water Solutions | Jackson Financial vs. Western Midstream Partners |
| NISOURCE vs. AEP TEX INC | NISOURCE vs. US BANK NATIONAL | NISOURCE vs. MetLife | NISOURCE vs. Jackson Financial |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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