Correlation Between HeadsUp Entertainment and Jackson Financial

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

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

Diversification Opportunities for HeadsUp Entertainment and Jackson Financial

-0.66

Correlation Coefficient

HeadsUp Entertainment  Jackson Financial

Excellent diversification

The 3 months correlation between HeadsUp and Jackson is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding HeadsUp Entertainment Internat and Jackson Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackson Financial and HeadsUp Entertainment 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 HeadsUp Entertainment International 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 HeadsUp Entertainment i.e., HeadsUp Entertainment and Jackson Financial go up and down completely randomly.

Pair Corralation between HeadsUp Entertainment and Jackson Financial

Given the investment horizon of 90 days HeadsUp Entertainment International is expected to under-perform the Jackson Financial. In addition to that, HeadsUp Entertainment is 19.62 times more volatile than Jackson Financial. It trades about -0.07 of its total potential returns per unit of risk. Jackson Financial is currently generating about 0.1 per unit of volatility. If you would invest  2,603  in Jackson Financial on September 12, 2024 and sell it today you would earn a total of  82.00  from holding Jackson Financial or generate 3.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

HeadsUp Entertainment Internat  vs.  Jackson Financial

HeadsUp Entertainment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HeadsUp Entertainment International has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Jackson Financial

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jackson Financial are ranked lower than 7 (%) 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 HeadsUp Entertainment and Jackson Financial

The main advantage of trading using opposite HeadsUp Entertainment and Jackson Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeadsUp Entertainment 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 HeadsUp Entertainment International 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.