Correlation Between Jefferies Financial and Unipar Carbocloro
Can any of the company-specific risk be diversified away by investing in both Jefferies Financial and Unipar Carbocloro 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 Unipar Carbocloro 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 Unipar Carbocloro SA, you can compare the effects of market volatilities on Jefferies Financial and Unipar Carbocloro 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 Unipar Carbocloro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jefferies Financial and Unipar Carbocloro.
Diversification Opportunities for Jefferies Financial and Unipar Carbocloro
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jefferies and Unipar is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jefferies Financial Group and Unipar Carbocloro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unipar Carbocloro 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 Unipar Carbocloro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unipar Carbocloro has no effect on the direction of Jefferies Financial i.e., Jefferies Financial and Unipar Carbocloro go up and down completely randomly.
Pair Corralation between Jefferies Financial and Unipar Carbocloro
Assuming the 90 days trading horizon Jefferies Financial Group is expected to generate 0.78 times more return on investment than Unipar Carbocloro. However, Jefferies Financial Group is 1.29 times less risky than Unipar Carbocloro. It trades about 0.01 of its potential returns per unit of risk. Unipar Carbocloro SA is currently generating about -0.06 per unit of risk. If you would invest 45,908 in Jefferies Financial Group on October 26, 2024 and sell it today you would earn a total of 152.00 from holding Jefferies Financial Group or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jefferies Financial Group vs. Unipar Carbocloro SA
Performance |
| Timeline |
| Jefferies Financial |
| Unipar Carbocloro |
Jefferies Financial and Unipar Carbocloro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jefferies Financial and Unipar Carbocloro
The main advantage of trading using opposite Jefferies Financial and Unipar Carbocloro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jefferies Financial position performs unexpectedly, Unipar Carbocloro 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 Unipar Carbocloro will offset losses from the drop in Unipar Carbocloro's long position.| Jefferies Financial vs. salesforce inc | Jefferies Financial vs. STAG Industrial, | Jefferies Financial vs. Annaly Capital Management, | Jefferies Financial vs. Metalurgica Gerdau SA |
| Unipar Carbocloro vs. Unipar Carbocloro SA | Unipar Carbocloro vs. Unipar Carbocloro SA | Unipar Carbocloro vs. Braskem SA | Unipar Carbocloro vs. Klabin 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |