Correlation Between HP and JEFFERIES
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By analyzing existing cross correlation between HP Inc and JEFFERIES GROUP INC, you can compare the effects of market volatilities on HP 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 HP with a short position of JEFFERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of HP and JEFFERIES.
Diversification Opportunities for HP and JEFFERIES
Excellent diversification
The 3 months correlation between HP and JEFFERIES is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding HP Inc 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 HP 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 HP Inc 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 HP i.e., HP and JEFFERIES go up and down completely randomly.
Pair Corralation between HP and JEFFERIES
Considering the 90-day investment horizon HP Inc is expected to generate 5.14 times more return on investment than JEFFERIES. However, HP is 5.14 times more volatile than JEFFERIES GROUP INC. It trades about 0.01 of its potential returns per unit of risk. JEFFERIES GROUP INC is currently generating about -0.12 per unit of risk. If you would invest 3,560 in HP Inc on September 3, 2024 and sell it today you would lose (17.00) from holding HP Inc or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 88.1% |
| Values | Daily Returns |
HP Inc vs. JEFFERIES GROUP INC
Performance |
| Timeline |
| HP Inc |
| JEFFERIES GROUP INC |
HP and JEFFERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HP and JEFFERIES
The main advantage of trading using opposite HP and JEFFERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HP 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.The idea behind HP Inc and JEFFERIES GROUP INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| JEFFERIES vs. Proficient Auto Logistics, | JEFFERIES vs. Verra Mobility Corp | JEFFERIES vs. Pekin Life Insurance | JEFFERIES vs. The Hanover Insurance |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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