Correlation Between Jackson Acquisition and Integrated Rail

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

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

Diversification Opportunities for Jackson Acquisition and Integrated Rail

0.86

Correlation Coefficient

Jackson Acquisition  Integrated Rail

Very poor diversification

The 3 months correlation between Jackson and Integrated is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Acquisition Co and Integrated Rail and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Rail and Jackson Acquisition 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 Acquisition Co are associated (or correlated) with Integrated Rail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Rail has no effect on the direction of Jackson Acquisition i.e., Jackson Acquisition and Integrated Rail go up and down completely randomly.

Pair Corralation between Jackson Acquisition and Integrated Rail

If you would invest  1,076  in Integrated Rail and on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Integrated Rail and or generate 0.0% return on investment over 90 days.

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

Jackson Acquisition Co  vs.  Integrated Rail and

Jackson Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jackson Acquisition Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Jackson Acquisition is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Integrated Rail

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integrated Rail and has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Integrated Rail is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jackson Acquisition and Integrated Rail

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

The idea behind Jackson Acquisition Co and Integrated Rail and 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.