Correlation Between Jefferies Financial and DENTSPLY SIRONA
Can any of the company-specific risk be diversified away by investing in both Jefferies Financial and DENTSPLY SIRONA 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 DENTSPLY SIRONA 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 DENTSPLY SIRONA, you can compare the effects of market volatilities on Jefferies Financial and DENTSPLY SIRONA 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 DENTSPLY SIRONA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jefferies Financial and DENTSPLY SIRONA.
Diversification Opportunities for Jefferies Financial and DENTSPLY SIRONA
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jefferies and DENTSPLY is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jefferies Financial Group and DENTSPLY SIRONA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DENTSPLY SIRONA 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 DENTSPLY SIRONA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DENTSPLY SIRONA has no effect on the direction of Jefferies Financial i.e., Jefferies Financial and DENTSPLY SIRONA go up and down completely randomly.
Pair Corralation between Jefferies Financial and DENTSPLY SIRONA
Assuming the 90 days trading horizon Jefferies Financial Group is expected to generate 1.31 times more return on investment than DENTSPLY SIRONA. However, Jefferies Financial is 1.31 times more volatile than DENTSPLY SIRONA. It trades about 0.09 of its potential returns per unit of risk. DENTSPLY SIRONA is currently generating about 0.01 per unit of risk. If you would invest 18,675 in Jefferies Financial Group on October 11, 2024 and sell it today you would earn a total of 29,283 from holding Jefferies Financial Group or generate 156.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jefferies Financial Group vs. DENTSPLY SIRONA
Performance |
| Timeline |
| Jefferies Financial |
| DENTSPLY SIRONA |
Jefferies Financial and DENTSPLY SIRONA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jefferies Financial and DENTSPLY SIRONA
The main advantage of trading using opposite Jefferies Financial and DENTSPLY SIRONA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jefferies Financial position performs unexpectedly, DENTSPLY SIRONA 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 DENTSPLY SIRONA will offset losses from the drop in DENTSPLY SIRONA's long position.| Jefferies Financial vs. Energisa SA | Jefferies Financial vs. BTG Pactual Logstica | Jefferies Financial vs. Plano Plano Desenvolvimento | Jefferies Financial vs. Ares Management |
| DENTSPLY SIRONA vs. Jefferies Financial Group | DENTSPLY SIRONA vs. Brpr Corporate Offices | DENTSPLY SIRONA vs. Sumitomo Mitsui Financial | DENTSPLY SIRONA vs. Electronic Arts |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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