Correlation Between Allegion PLC and JEFFERIES
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By analyzing existing cross correlation between Allegion PLC and JEFFERIES GROUP LLC, you can compare the effects of market volatilities on Allegion PLC 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 Allegion PLC with a short position of JEFFERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegion PLC and JEFFERIES.
Diversification Opportunities for Allegion PLC and JEFFERIES
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allegion and JEFFERIES is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Allegion PLC and JEFFERIES GROUP LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JEFFERIES GROUP LLC and Allegion PLC 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 Allegion PLC 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 LLC has no effect on the direction of Allegion PLC i.e., Allegion PLC and JEFFERIES go up and down completely randomly.
Pair Corralation between Allegion PLC and JEFFERIES
Given the investment horizon of 90 days Allegion PLC is expected to generate 0.73 times more return on investment than JEFFERIES. However, Allegion PLC is 1.37 times less risky than JEFFERIES. It trades about 0.12 of its potential returns per unit of risk. JEFFERIES GROUP LLC is currently generating about -0.19 per unit of risk. If you would invest 13,213 in Allegion PLC on October 24, 2024 and sell it today you would earn a total of 294.00 from holding Allegion PLC or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Allegion PLC vs. JEFFERIES GROUP LLC
Performance |
| Timeline |
| Allegion PLC |
| JEFFERIES GROUP LLC |
Allegion PLC and JEFFERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegion PLC and JEFFERIES
The main advantage of trading using opposite Allegion PLC and JEFFERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegion PLC 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.| Allegion PLC vs. MSA Safety | Allegion PLC vs. Resideo Technologies | Allegion PLC vs. NL Industries | Allegion PLC vs. Brady |
| JEFFERIES vs. ASML Holding NV | JEFFERIES vs. Skyworks Solutions | JEFFERIES vs. Teradyne | JEFFERIES vs. Semtech |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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