Correlation Between Jackson Financial and NOHO
Can any of the company-specific risk be diversified away by investing in both Jackson Financial and NOHO 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 NOHO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jackson Financial and NOHO Inc, you can compare the effects of market volatilities on Jackson Financial and NOHO 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 NOHO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and NOHO.
Diversification Opportunities for Jackson Financial and NOHO
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jackson and NOHO is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and NOHO Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOHO Inc 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 NOHO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOHO Inc has no effect on the direction of Jackson Financial i.e., Jackson Financial and NOHO go up and down completely randomly.
Pair Corralation between Jackson Financial and NOHO
Assuming the 90 days trading horizon Jackson Financial is expected to under-perform the NOHO. But the preferred stock apears to be less risky and, when comparing its historical volatility, Jackson Financial is 71.13 times less risky than NOHO. The preferred stock trades about -0.01 of its potential returns per unit of risk. The NOHO Inc is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 0.01 in NOHO Inc on December 28, 2024 and sell it today you would earn a total of 0.01 from holding NOHO Inc or generate 100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
Jackson Financial vs. NOHO Inc
Performance |
Timeline |
Jackson Financial |
NOHO Inc |
Jackson Financial and NOHO Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jackson Financial and NOHO
The main advantage of trading using opposite Jackson Financial and NOHO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, NOHO 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 NOHO will offset losses from the drop in NOHO's long position.Jackson Financial vs. FG Annuities Life | Jackson Financial vs. Globe Life | Jackson Financial vs. MetLife Preferred Stock | Jackson Financial vs. MetLife Preferred Stock |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |