Correlation Between Jefferies Financial and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Jefferies Financial and Fidelity National 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 Jefferies Financial and Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jefferies Financial Group and Fidelity National Information, you can compare the effects of market volatilities on Jefferies Financial and Fidelity National 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 Jefferies Financial with a short position of Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jefferies Financial and Fidelity National.
Diversification Opportunities for Jefferies Financial and Fidelity National
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jefferies and Fidelity is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Jefferies Financial Group and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National and Jefferies Financial 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 Jefferies Financial Group are associated (or correlated) with Fidelity National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity National has no effect on the direction of Jefferies Financial i.e., Jefferies Financial and Fidelity National go up and down completely randomly.
Pair Corralation between Jefferies Financial and Fidelity National
Assuming the 90 days trading horizon Jefferies Financial Group is expected to generate 1.45 times more return on investment than Fidelity National. However, Jefferies Financial is 1.45 times more volatile than Fidelity National Information. It trades about 0.08 of its potential returns per unit of risk. Fidelity National Information is currently generating about 0.04 per unit of risk. If you would invest 18,675 in Jefferies Financial Group on October 15, 2024 and sell it today you would earn a total of 24,694 from holding Jefferies Financial Group or generate 132.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Jefferies Financial Group vs. Fidelity National Information
Performance |
| Timeline |
| Jefferies Financial |
| Fidelity National |
Jefferies Financial and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jefferies Financial and Fidelity National
The main advantage of trading using opposite Jefferies Financial and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jefferies Financial position performs unexpectedly, Fidelity National 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 Fidelity National will offset losses from the drop in Fidelity National's long position.| Jefferies Financial vs. Clover Health Investments, | Jefferies Financial vs. Pure Storage, | Jefferies Financial vs. Metalrgica Riosulense SA | Jefferies Financial vs. Datadog, |
| Fidelity National vs. Pure Storage, | Fidelity National vs. Tyson Foods | Fidelity National vs. The Home Depot | Fidelity National vs. G2D Investments |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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