Correlation Between Jefferies Financial and Moura Dubeux
Can any of the company-specific risk be diversified away by investing in both Jefferies Financial and Moura Dubeux 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 Moura Dubeux 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 Moura Dubeux Engenharia, you can compare the effects of market volatilities on Jefferies Financial and Moura Dubeux 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 Moura Dubeux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jefferies Financial and Moura Dubeux.
Diversification Opportunities for Jefferies Financial and Moura Dubeux
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jefferies and Moura is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jefferies Financial Group and Moura Dubeux Engenharia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moura Dubeux Engenharia 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 Moura Dubeux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moura Dubeux Engenharia has no effect on the direction of Jefferies Financial i.e., Jefferies Financial and Moura Dubeux go up and down completely randomly.
Pair Corralation between Jefferies Financial and Moura Dubeux
Assuming the 90 days trading horizon Jefferies Financial Group is expected to generate 0.92 times more return on investment than Moura Dubeux. However, Jefferies Financial Group is 1.09 times less risky than Moura Dubeux. It trades about 0.11 of its potential returns per unit of risk. Moura Dubeux Engenharia is currently generating about 0.08 per unit of risk. If you would invest 15,835 in Jefferies Financial Group on October 29, 2024 and sell it today you would earn a total of 30,225 from holding Jefferies Financial Group or generate 190.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.68% |
| Values | Daily Returns |
Jefferies Financial Group vs. Moura Dubeux Engenharia
Performance |
| Timeline |
| Jefferies Financial |
| Moura Dubeux Engenharia |
Jefferies Financial and Moura Dubeux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jefferies Financial and Moura Dubeux
The main advantage of trading using opposite Jefferies Financial and Moura Dubeux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jefferies Financial position performs unexpectedly, Moura Dubeux 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 Moura Dubeux will offset losses from the drop in Moura Dubeux's long position.| Jefferies Financial vs. Metalurgica Gerdau SA | Jefferies Financial vs. Costco Wholesale | Jefferies Financial vs. Microchip Technology Incorporated | Jefferies Financial vs. Paycom Software |
| Moura Dubeux vs. Mitre Realty Empreendimentos | Moura Dubeux vs. Lavvi Empreendimentos Imobilirios | Moura Dubeux vs. Even Construtora e | Moura Dubeux vs. Direcional Engenharia SA |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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