Correlation Between Jackson Financial and Jackpot Digital
Can any of the company-specific risk be diversified away by investing in both Jackson Financial and Jackpot Digital 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 Jackpot Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jackson Financial and Jackpot Digital, you can compare the effects of market volatilities on Jackson Financial and Jackpot Digital 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 Jackpot Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and Jackpot Digital.
Diversification Opportunities for Jackson Financial and Jackpot Digital
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jackson and Jackpot is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and Jackpot Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackpot Digital 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 Jackpot Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackpot Digital has no effect on the direction of Jackson Financial i.e., Jackson Financial and Jackpot Digital go up and down completely randomly.
Pair Corralation between Jackson Financial and Jackpot Digital
Assuming the 90 days trading horizon Jackson Financial is expected to under-perform the Jackpot Digital. But the preferred stock apears to be less risky and, when comparing its historical volatility, Jackson Financial is 16.0 times less risky than Jackpot Digital. The preferred stock trades about 0.0 of its potential returns per unit of risk. The Jackpot Digital is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4.70 in Jackpot Digital on September 6, 2024 and sell it today you would earn a total of 0.00 from holding Jackpot Digital or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Jackson Financial vs. Jackpot Digital
Performance |
Timeline |
Jackson Financial |
Jackpot Digital |
Jackson Financial and Jackpot Digital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jackson Financial and Jackpot Digital
The main advantage of trading using opposite Jackson Financial and Jackpot Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, Jackpot Digital 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 Jackpot Digital will offset losses from the drop in Jackpot Digital's long position.Jackson Financial vs. Cracker Barrel Old | Jackson Financial vs. Allegiant Travel | Jackson Financial vs. Rave Restaurant Group | Jackson Financial vs. Air Transport Services |
Jackpot Digital vs. Intema Solutions | Jackpot Digital vs. 888 Holdings | Jackpot Digital vs. Royal Wins | Jackpot Digital vs. Churchill Downs Incorporated |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |