Correlation Between Jackson Financial and STATE
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By analyzing existing cross correlation between Jackson Financial and STATE STREET P, you can compare the effects of market volatilities on Jackson Financial and STATE 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 STATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and STATE.
Diversification Opportunities for Jackson Financial and STATE
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jackson and STATE is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and STATE STREET P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STATE STREET 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 STATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STATE STREET P has no effect on the direction of Jackson Financial i.e., Jackson Financial and STATE go up and down completely randomly.
Pair Corralation between Jackson Financial and STATE
Assuming the 90 days trading horizon Jackson Financial is expected to generate 3.85 times less return on investment than STATE. In addition to that, Jackson Financial is 1.41 times more volatile than STATE STREET P. It trades about 0.04 of its total potential returns per unit of risk. STATE STREET P is currently generating about 0.21 per unit of volatility. If you would invest 8,938 in STATE STREET P on September 5, 2024 and sell it today you would earn a total of 141.00 from holding STATE STREET P or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jackson Financial vs. STATE STREET P
Performance |
| Timeline |
| Jackson Financial |
| STATE STREET P |
Jackson Financial and STATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and STATE
The main advantage of trading using opposite Jackson Financial and STATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, STATE 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 STATE will offset losses from the drop in STATE'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 |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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