Correlation Between Jackson Financial and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Jackson Financial and Credit Suisse 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 Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jackson Financial and Credit Suisse Group, you can compare the effects of market volatilities on Jackson Financial and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and Credit Suisse.
Diversification Opportunities for Jackson Financial and Credit Suisse
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jackson and Credit is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and Credit Suisse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Group 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 Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Group has no effect on the direction of Jackson Financial i.e., Jackson Financial and Credit Suisse go up and down completely randomly.
Pair Corralation between Jackson Financial and Credit Suisse
If you would invest 2,330 in Jackson Financial on September 8, 2024 and sell it today you would earn a total of 357.00 from holding Jackson Financial or generate 15.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 0.4% |
Values | Daily Returns |
Jackson Financial vs. Credit Suisse Group
Performance |
Timeline |
Jackson Financial |
Credit Suisse Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jackson Financial and Credit Suisse Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jackson Financial and Credit Suisse
The main advantage of trading using opposite Jackson Financial and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.Jackson Financial vs. CECO Environmental Corp | Jackson Financial vs. SEI Investments | Jackson Financial vs. Topbuild Corp | Jackson Financial vs. Old Republic International |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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