Correlation Between Jackson Financial and Singular Genomics

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

By analyzing existing cross correlation between Jackson Financial and Singular Genomics Systems, you can compare the effects of market volatilities on Jackson Financial and Singular Genomics 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 Singular Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Financial and Singular Genomics.

Diversification Opportunities for Jackson Financial and Singular Genomics

0.42

Correlation Coefficient

Jackson Financial  Singular Genomics

Very weak diversification

The 3 months correlation between Jackson and Singular is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and Singular Genomics Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singular Genomics Systems 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 Singular Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singular Genomics Systems has no effect on the direction of Jackson Financial i.e., Jackson Financial and Singular Genomics go up and down completely randomly.

Pair Corralation between Jackson Financial and Singular Genomics

Assuming the 90 days trading horizon Jackson Financial is expected to generate 0.43 times more return on investment than Singular Genomics. However, Jackson Financial is 2.32 times less risky than Singular Genomics. It trades about -0.03 of its potential returns per unit of risk. Singular Genomics Systems is currently generating about -0.08 per unit of risk. If you would invest  2,680  in Jackson Financial on December 2, 2024 and sell it today you would lose (43.00) from holding Jackson Financial or give up 1.6% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	91.8%
Values	Daily Returns

Jackson Financial  vs.  Singular Genomics Systems

Jackson Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jackson Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Jackson Financial is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Singular Genomics Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Singular Genomics Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Jackson Financial and Singular Genomics

The main advantage of trading using opposite Jackson Financial and Singular Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Financial position performs unexpectedly, Singular Genomics 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 Singular Genomics will offset losses from the drop in Singular Genomics' long position.

The idea behind Jackson Financial and Singular Genomics Systems 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.