Correlation Between Jackson Financial and TRAVELERS
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By analyzing existing cross correlation between Jackson Financial and TRAVELERS INS GROUP, you can compare the effects of market volatilities on Jackson Financial and TRAVELERS 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 TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and TRAVELERS.
Diversification Opportunities for Jackson Financial and TRAVELERS
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jackson and TRAVELERS is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and TRAVELERS INS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INS GROUP 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 TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INS GROUP has no effect on the direction of Jackson Financial i.e., Jackson Financial and TRAVELERS go up and down completely randomly.
Pair Corralation between Jackson Financial and TRAVELERS
Assuming the 90 days trading horizon Jackson Financial is expected to generate 0.89 times more return on investment than TRAVELERS. However, Jackson Financial is 1.12 times less risky than TRAVELERS. It trades about 0.09 of its potential returns per unit of risk. TRAVELERS INS GROUP is currently generating about 0.05 per unit of risk. If you would invest 2,578 in Jackson Financial on September 5, 2024 and sell it today you would earn a total of 157.00 from holding Jackson Financial or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 49.6% |
| Values | Daily Returns |
Jackson Financial vs. TRAVELERS INS GROUP
Performance |
| Timeline |
| Jackson Financial |
| TRAVELERS INS GROUP |
Jackson Financial and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and TRAVELERS
The main advantage of trading using opposite Jackson Financial and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, TRAVELERS 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 TRAVELERS will offset losses from the drop in TRAVELERS'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 |
| TRAVELERS vs. AEP TEX INC | TRAVELERS vs. US BANK NATIONAL | TRAVELERS vs. Jackson Financial | TRAVELERS vs. MetLife |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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