Correlation Between Ambev SA and JEFFERIES
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By analyzing existing cross correlation between Ambev SA ADR and JEFFERIES GROUP INC, you can compare the effects of market volatilities on Ambev SA and JEFFERIES 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 Ambev SA with a short position of JEFFERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambev SA and JEFFERIES.
Diversification Opportunities for Ambev SA and JEFFERIES
Modest diversification
The 3 months correlation between Ambev and JEFFERIES is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ambev SA ADR and JEFFERIES GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JEFFERIES GROUP INC and Ambev SA 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 Ambev SA ADR are associated (or correlated) with JEFFERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JEFFERIES GROUP INC has no effect on the direction of Ambev SA i.e., Ambev SA and JEFFERIES go up and down completely randomly.
Pair Corralation between Ambev SA and JEFFERIES
Given the investment horizon of 90 days Ambev SA ADR is expected to generate 1.07 times more return on investment than JEFFERIES. However, Ambev SA is 1.07 times more volatile than JEFFERIES GROUP INC. It trades about -0.03 of its potential returns per unit of risk. JEFFERIES GROUP INC is currently generating about -0.04 per unit of risk. If you would invest 222.00 in Ambev SA ADR on September 13, 2024 and sell it today you would lose (4.50) from holding Ambev SA ADR or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Ambev SA ADR vs. JEFFERIES GROUP INC
Performance |
| Timeline |
| Ambev SA ADR |
| JEFFERIES GROUP INC |
Ambev SA and JEFFERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambev SA and JEFFERIES
The main advantage of trading using opposite Ambev SA and JEFFERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambev SA position performs unexpectedly, JEFFERIES 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 JEFFERIES will offset losses from the drop in JEFFERIES's long position.| Ambev SA vs. Fomento Economico Mexicano | Ambev SA vs. Boston Beer | Ambev SA vs. Carlsberg AS | Ambev SA vs. Compania Cervecerias Unidas |
| JEFFERIES vs. Capital Clean Energy | JEFFERIES vs. NuRAN Wireless | JEFFERIES vs. NRG Energy | JEFFERIES vs. Tesla Inc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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