Correlation Between Vericity and Jackson Financial
Can any of the company-specific risk be diversified away by investing in both Vericity 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 Vericity and Jackson Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vericity and Jackson Financial, you can compare the effects of market volatilities on Vericity 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 Vericity with a short position of Jackson Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vericity and Jackson Financial.
Diversification Opportunities for Vericity and Jackson Financial
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vericity and Jackson is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Vericity and Jackson Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackson Financial and Vericity 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 Vericity 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 Vericity i.e., Vericity and Jackson Financial go up and down completely randomly.
Pair Corralation between Vericity and Jackson Financial
If you would invest 8,910 in Jackson Financial on October 22, 2024 and sell it today you would earn a total of 348.00 from holding Jackson Financial or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Vericity vs. Jackson Financial
Performance |
| Timeline |
| Vericity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jackson Financial |
Vericity and Jackson Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vericity and Jackson Financial
The main advantage of trading using opposite Vericity and Jackson Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vericity 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.| Vericity vs. CNO Financial Group | Vericity vs. Brighthouse Financial | Vericity vs. FG Annuities Life | Vericity vs. Prudential PLC ADR |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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