Correlation Between Jefferies Financial and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Jefferies Financial and Uber Technologies 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 Uber Technologies 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 Uber Technologies, you can compare the effects of market volatilities on Jefferies Financial and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jefferies Financial and Uber Technologies.
Diversification Opportunities for Jefferies Financial and Uber Technologies
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jefferies and Uber is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jefferies Financial Group and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Jefferies Financial i.e., Jefferies Financial and Uber Technologies go up and down completely randomly.
Pair Corralation between Jefferies Financial and Uber Technologies
Assuming the 90 days trading horizon Jefferies Financial Group is expected to under-perform the Uber Technologies. In addition to that, Jefferies Financial is 1.46 times more volatile than Uber Technologies. It trades about -0.11 of its total potential returns per unit of risk. Uber Technologies is currently generating about 0.05 per unit of volatility. If you would invest 9,706 in Uber Technologies on November 3, 2024 and sell it today you would earn a total of 184.00 from holding Uber Technologies or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jefferies Financial Group vs. Uber Technologies
Performance |
| Timeline |
| Jefferies Financial |
| Uber Technologies |
Jefferies Financial and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jefferies Financial and Uber Technologies
The main advantage of trading using opposite Jefferies Financial and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jefferies Financial position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| Jefferies Financial vs. Global X Funds | Jefferies Financial vs. G2D Investments | Jefferies Financial vs. Hormel Foods | Jefferies Financial vs. Academy Sports and |
| Uber Technologies vs. Discover Financial Services | Uber Technologies vs. MAHLE Metal Leve | Uber Technologies vs. STMicroelectronics NV | Uber Technologies vs. Bread Financial Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |