Correlation Between Jackson Financial and NSTAR
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By analyzing existing cross correlation between Jackson Financial and NSTAR ELEC 44, you can compare the effects of market volatilities on Jackson Financial and NSTAR 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 NSTAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and NSTAR.
Diversification Opportunities for Jackson Financial and NSTAR
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jackson and NSTAR is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and NSTAR ELEC 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSTAR ELEC 44 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 NSTAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSTAR ELEC 44 has no effect on the direction of Jackson Financial i.e., Jackson Financial and NSTAR go up and down completely randomly.
Pair Corralation between Jackson Financial and NSTAR
Assuming the 90 days trading horizon Jackson Financial is expected to generate 238.34 times less return on investment than NSTAR. But when comparing it to its historical volatility, Jackson Financial is 109.57 times less risky than NSTAR. It trades about 0.05 of its potential returns per unit of risk. NSTAR ELEC 44 is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 9,270 in NSTAR ELEC 44 on September 4, 2024 and sell it today you would lose (363.00) from holding NSTAR ELEC 44 or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 31.52% |
| Values | Daily Returns |
Jackson Financial vs. NSTAR ELEC 44
Performance |
| Timeline |
| Jackson Financial |
| NSTAR ELEC 44 |
Jackson Financial and NSTAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and NSTAR
The main advantage of trading using opposite Jackson Financial and NSTAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, NSTAR 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 NSTAR will offset losses from the drop in NSTAR's long position.| Jackson Financial vs. Asure Software | Jackson Financial vs. Assurant | Jackson Financial vs. Sun Life Financial | Jackson Financial vs. GoHealth |
| NSTAR vs. Iridium Communications | NSTAR vs. The Hanover Insurance | NSTAR vs. Siriuspoint | NSTAR vs. Citizens |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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