Correlation Between Computershare and Jefferies Financial
Can any of the company-specific risk be diversified away by investing in both Computershare 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 Computershare and Jefferies Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computershare Ltd ADR and Jefferies Financial Group, you can compare the effects of market volatilities on Computershare 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 Computershare with a short position of Jefferies Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computershare and Jefferies Financial.
Diversification Opportunities for Computershare and Jefferies Financial
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Computershare and Jefferies is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Computershare Ltd ADR and Jefferies Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jefferies Financial and Computershare 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 Computershare Ltd ADR 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 Computershare i.e., Computershare and Jefferies Financial go up and down completely randomly.
Pair Corralation between Computershare and Jefferies Financial
Assuming the 90 days horizon Computershare is expected to generate 2.57 times less return on investment than Jefferies Financial. But when comparing it to its historical volatility, Computershare Ltd ADR is 1.11 times less risky than Jefferies Financial. It trades about 0.11 of its potential returns per unit of risk. Jefferies Financial Group is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 4,530 in Jefferies Financial Group on August 28, 2024 and sell it today you would earn a total of 3,418 from holding Jefferies Financial Group or generate 75.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Computershare Ltd ADR vs. Jefferies Financial Group
Performance |
| Timeline |
| Computershare ADR |
| Jefferies Financial |
Computershare and Jefferies Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computershare and Jefferies Financial
The main advantage of trading using opposite Computershare and Jefferies Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computershare 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.| Computershare vs. GiveMePower Corp | Computershare vs. Axis Technologies Group | Computershare vs. Vortex Brands Co | Computershare vs. Sysorex |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |