Correlation Between Stifel Financial and Jackson Financial
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Jackson Financial 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 Stifel Financial and Jackson Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Jackson Financial, you can compare the effects of market volatilities on Stifel Financial and Jackson Financial 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 Stifel Financial with a short position of Jackson Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Jackson Financial.
Diversification Opportunities for Stifel Financial and Jackson Financial
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Stifel and Jackson is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Jackson Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackson Financial and Stifel 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 Stifel Financial are associated (or correlated) with Jackson Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackson Financial has no effect on the direction of Stifel Financial i.e., Stifel Financial and Jackson Financial go up and down completely randomly.
Pair Corralation between Stifel Financial and Jackson Financial
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 0.84 times more return on investment than Jackson Financial. However, Stifel Financial is 1.19 times less risky than Jackson Financial. It trades about 0.18 of its potential returns per unit of risk. Jackson Financial is currently generating about 0.04 per unit of risk. If you would invest 10,514 in Stifel Financial on August 27, 2024 and sell it today you would earn a total of 1,258 from holding Stifel Financial or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stifel Financial vs. Jackson Financial
Performance |
| Timeline |
| Stifel Financial |
| Jackson Financial |
Stifel Financial and Jackson Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Jackson Financial
The main advantage of trading using opposite Stifel Financial and Jackson Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Jackson Financial 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 Jackson Financial will offset losses from the drop in Jackson Financial's long position.| Stifel Financial vs. Raymond James Financial | Stifel Financial vs. Evercore Partners | Stifel Financial vs. Selective Insurance Group | Stifel Financial vs. Reinsurance Group of |
| Jackson Financial vs. Prudential Financial | Jackson Financial vs. MetLife | Jackson Financial vs. Unum Group | Jackson Financial vs. Manulife Financial Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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