Correlation Between Jackson Financial and Bridge Investment

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

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

Diversification Opportunities for Jackson Financial and Bridge Investment

0.75

Correlation Coefficient

Jackson Financial  Bridge Investment

Poor diversification

The 3 months correlation between Jackson and Bridge is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Financial and Bridge Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridge Investment 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 Bridge Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridge Investment has no effect on the direction of Jackson Financial i.e., Jackson Financial and Bridge Investment go up and down completely randomly.

Pair Corralation between Jackson Financial and Bridge Investment

Considering the 90-day investment horizon Jackson Financial is expected to generate 1.8 times less return on investment than Bridge Investment. But when comparing it to its historical volatility, Jackson Financial is 1.18 times less risky than Bridge Investment. It trades about 0.04 of its potential returns per unit of risk. Bridge Investment Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  909.00  in Bridge Investment Group on May 6, 2025 and sell it today you would earn a total of  66.00  from holding Bridge Investment Group or generate 7.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Jackson Financial  vs.  Bridge Investment Group

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.

Bridge Investment

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bridge Investment Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent fundamental indicators, Bridge Investment may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Jackson Financial and Bridge Investment

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

The idea behind Jackson Financial and Bridge Investment Group 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.