Correlation Between Jackson Financial and NORSK
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By analyzing existing cross correlation between Jackson Financial and NORSK HYDRO A, you can compare the effects of market volatilities on Jackson Financial and NORSK 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 NORSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and NORSK.
Diversification Opportunities for Jackson Financial and NORSK
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jackson and NORSK is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and NORSK HYDRO A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORSK HYDRO A 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 NORSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORSK HYDRO A has no effect on the direction of Jackson Financial i.e., Jackson Financial and NORSK go up and down completely randomly.
Pair Corralation between Jackson Financial and NORSK
Assuming the 90 days trading horizon Jackson Financial is expected to generate 1.17 times less return on investment than NORSK. In addition to that, Jackson Financial is 1.33 times more volatile than NORSK HYDRO A. It trades about 0.08 of its total potential returns per unit of risk. NORSK HYDRO A is currently generating about 0.13 per unit of volatility. If you would invest 10,246 in NORSK HYDRO A on September 3, 2024 and sell it today you would earn a total of 98.00 from holding NORSK HYDRO A or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Jackson Financial vs. NORSK HYDRO A
Performance |
| Timeline |
| Jackson Financial |
| NORSK HYDRO A |
Jackson Financial and NORSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and NORSK
The main advantage of trading using opposite Jackson Financial and NORSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, NORSK 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 NORSK will offset losses from the drop in NORSK's long position.| Jackson Financial vs. Analog Devices | Jackson Financial vs. Tencent Music Entertainment | Jackson Financial vs. RBC Bearings Incorporated | Jackson Financial vs. BioNTech SE |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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