Correlation Between All For and Jackson Financial

Can any of the company-specific risk be diversified away by investing in both All For 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 All For and Jackson Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between All For One and Jackson Financial, you can compare the effects of market volatilities on All For 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 All For with a short position of Jackson Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of All For and Jackson Financial.

Diversification Opportunities for All For and Jackson Financial

0.0

Correlation Coefficient

All For  Jackson Financial

Pay attention - limited upside

The 3 months correlation between All and Jackson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding All For One and Jackson Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackson Financial and All For 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 All For One 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 All For i.e., All For and Jackson Financial go up and down completely randomly.

Pair Corralation between All For and Jackson Financial

Given the investment horizon of 90 days All For One is expected to generate 206.01 times more return on investment than Jackson Financial. However, All For is 206.01 times more volatile than Jackson Financial. It trades about 0.21 of its potential returns per unit of risk. Jackson Financial is currently generating about 0.05 per unit of risk. If you would invest  57.00  in All For One on September 5, 2024 and sell it today you would lose (56.99) from holding All For One or give up 99.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	89.47%
Values	Daily Returns

All For One  vs.  Jackson Financial

All For One

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days All For One has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, All For is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Jackson Financial

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jackson Financial are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Jackson Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with All For and Jackson Financial

The main advantage of trading using opposite All For and Jackson Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if All For 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.

The idea behind All For One and Jackson Financial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.