Correlation Between Jackson Financial and National Western
Can any of the company-specific risk be diversified away by investing in both Jackson Financial and National Western at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jackson Financial and National Western into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jackson Financial and National Western Life, you can compare the effects of market volatilities on Jackson Financial and National Western 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 National Western. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and National Western.
Diversification Opportunities for Jackson Financial and National Western
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jackson and National is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and National Western Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Western Life 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 National Western. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Western Life has no effect on the direction of Jackson Financial i.e., Jackson Financial and National Western go up and down completely randomly.
Pair Corralation between Jackson Financial and National Western
If you would invest 8,708 in Jackson Financial on November 1, 2024 and sell it today you would earn a total of 1,088 from holding Jackson Financial or generate 12.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Jackson Financial vs. National Western Life
Performance |
| Timeline |
| Jackson Financial |
| National Western Life |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jackson Financial and National Western Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Financial and National Western
The main advantage of trading using opposite Jackson Financial and National Western positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, National Western 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 National Western will offset losses from the drop in National Western's long position.| Jackson Financial vs. Prudential Financial | Jackson Financial vs. MetLife | Jackson Financial vs. Unum Group | Jackson Financial vs. Manulife Financial Corp |
| National Western vs. MetLife Preferred Stock | National Western vs. Prudential PLC ADR | National Western vs. CNO Financial Group | National Western vs. FG Annuities Life |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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