Correlation Between Bit Digital and Jefferies Financial
Can any of the company-specific risk be diversified away by investing in both Bit Digital and Jefferies 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 Bit Digital and Jefferies Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bit Digital and Jefferies Financial Group, you can compare the effects of market volatilities on Bit Digital and Jefferies 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 Bit Digital with a short position of Jefferies Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bit Digital and Jefferies Financial.
Diversification Opportunities for Bit Digital and Jefferies Financial
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bit and Jefferies is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bit Digital and Jefferies Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jefferies Financial and Bit Digital 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 Bit Digital are associated (or correlated) with Jefferies Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jefferies Financial has no effect on the direction of Bit Digital i.e., Bit Digital and Jefferies Financial go up and down completely randomly.
Pair Corralation between Bit Digital and Jefferies Financial
Given the investment horizon of 90 days Bit Digital is expected to generate 1.06 times less return on investment than Jefferies Financial. In addition to that, Bit Digital is 3.46 times more volatile than Jefferies Financial Group. It trades about 0.1 of its total potential returns per unit of risk. Jefferies Financial Group is currently generating about 0.38 per unit of volatility. If you would invest 6,372 in Jefferies Financial Group on August 26, 2024 and sell it today you would earn a total of 1,486 from holding Jefferies Financial Group or generate 23.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bit Digital vs. Jefferies Financial Group
Performance |
| Timeline |
| Bit Digital |
| Jefferies Financial |
Bit Digital and Jefferies Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bit Digital and Jefferies Financial
The main advantage of trading using opposite Bit Digital and Jefferies Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bit Digital position performs unexpectedly, Jefferies 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 Jefferies Financial will offset losses from the drop in Jefferies Financial's long position.| Bit Digital vs. Hut 8 Corp | Bit Digital vs. HIVE Blockchain Technologies | Bit Digital vs. CleanSpark | Bit Digital vs. Terawulf |
| Jefferies Financial vs. Lazard | Jefferies Financial vs. PJT Partners | Jefferies Financial vs. Moelis Co | Jefferies Financial vs. Houlihan Lokey |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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