Correlation Between Jefferies Financial and Perella Weinberg
Can any of the company-specific risk be diversified away by investing in both Jefferies Financial and Perella Weinberg 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 Perella Weinberg 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 Perella Weinberg Partners, you can compare the effects of market volatilities on Jefferies Financial and Perella Weinberg 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 Perella Weinberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jefferies Financial and Perella Weinberg.
Diversification Opportunities for Jefferies Financial and Perella Weinberg
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jefferies and Perella is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jefferies Financial Group and Perella Weinberg Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perella Weinberg Partners 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 Perella Weinberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perella Weinberg Partners has no effect on the direction of Jefferies Financial i.e., Jefferies Financial and Perella Weinberg go up and down completely randomly.
Pair Corralation between Jefferies Financial and Perella Weinberg
Considering the 90-day investment horizon Jefferies Financial Group is expected to under-perform the Perella Weinberg. In addition to that, Jefferies Financial is 1.14 times more volatile than Perella Weinberg Partners. It trades about -0.03 of its total potential returns per unit of risk. Perella Weinberg Partners is currently generating about 0.21 per unit of volatility. If you would invest 2,355 in Perella Weinberg Partners on November 2, 2024 and sell it today you would earn a total of 252.00 from holding Perella Weinberg Partners or generate 10.7% 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. Perella Weinberg Partners
Performance |
| Timeline |
| Jefferies Financial |
| Perella Weinberg Partners |
Jefferies Financial and Perella Weinberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jefferies Financial and Perella Weinberg
The main advantage of trading using opposite Jefferies Financial and Perella Weinberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jefferies Financial position performs unexpectedly, Perella Weinberg 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 Perella Weinberg will offset losses from the drop in Perella Weinberg's long position.| Jefferies Financial vs. Lazard | Jefferies Financial vs. PJT Partners | Jefferies Financial vs. Moelis Co | Jefferies Financial vs. Houlihan Lokey |
| Perella Weinberg vs. Evercore Partners | Perella Weinberg vs. Lazard | Perella Weinberg vs. Piper Sandler Companies | Perella Weinberg vs. Moelis Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| 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 |