Correlation Between Axa Equitable and Jackson Financial

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

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

Diversification Opportunities for Axa Equitable and Jackson Financial

0.58

Correlation Coefficient

Axa Equitable  Jackson Financial

Very weak diversification

The 3 months correlation between Axa and Jackson is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Axa Equitable Holdings and Jackson Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackson Financial and Axa Equitable 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 Axa Equitable Holdings are associated (or correlated) with Jackson Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackson Financial has no effect on the direction of Axa Equitable i.e., Axa Equitable and Jackson Financial go up and down completely randomly.

Pair Corralation between Axa Equitable and Jackson Financial

Considering the 90-day investment horizon Axa Equitable is expected to generate 4.28 times less return on investment than Jackson Financial. But when comparing it to its historical volatility, Axa Equitable Holdings is 1.1 times less risky than Jackson Financial. It trades about 0.01 of its potential returns per unit of risk. Jackson Financial is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  8,101  in Jackson Financial on May 6, 2025 and sell it today you would earn a total of  364.00  from holding Jackson Financial or generate 4.49% return on investment over 90 days.

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

Axa Equitable Holdings  vs.  Jackson Financial

Axa Equitable Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Axa Equitable Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Axa Equitable is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Jackson Financial

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jackson Financial are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Jackson Financial is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Axa Equitable and Jackson Financial

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

The idea behind Axa Equitable Holdings and Jackson Financial 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .