Correlation Between Robinhood Markets and Jefferies Financial
Can any of the company-specific risk be diversified away by investing in both Robinhood Markets 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 Robinhood Markets and Jefferies Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robinhood Markets and Jefferies Financial Group, you can compare the effects of market volatilities on Robinhood Markets 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 Robinhood Markets with a short position of Jefferies Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinhood Markets and Jefferies Financial.
Diversification Opportunities for Robinhood Markets and Jefferies Financial
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Robinhood and Jefferies is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Robinhood Markets and Jefferies Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jefferies Financial and Robinhood Markets 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 Robinhood Markets 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 Robinhood Markets i.e., Robinhood Markets and Jefferies Financial go up and down completely randomly.
Pair Corralation between Robinhood Markets and Jefferies Financial
Given the investment horizon of 90 days Robinhood Markets is expected to generate 2.37 times more return on investment than Jefferies Financial. However, Robinhood Markets is 2.37 times more volatile than Jefferies Financial Group. It trades about 0.24 of its potential returns per unit of risk. Jefferies Financial Group is currently generating about 0.36 per unit of risk. If you would invest 2,788 in Robinhood Markets on August 27, 2024 and sell it today you would earn a total of 877.00 from holding Robinhood Markets or generate 31.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Robinhood Markets vs. Jefferies Financial Group
Performance |
| Timeline |
| Robinhood Markets |
| Jefferies Financial |
Robinhood Markets and Jefferies Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robinhood Markets and Jefferies Financial
The main advantage of trading using opposite Robinhood Markets and Jefferies Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinhood Markets 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.| Robinhood Markets vs. Crowdstrike Holdings | Robinhood Markets vs. Palantir Technologies | Robinhood Markets vs. Cloudflare | Robinhood Markets vs. Adobe Systems Incorporated |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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