Correlation Between Li Auto and JEFFERIES
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By analyzing existing cross correlation between Li Auto and JEFFERIES GROUP INC, you can compare the effects of market volatilities on Li Auto and JEFFERIES 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 Li Auto with a short position of JEFFERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Li Auto and JEFFERIES.
Diversification Opportunities for Li Auto and JEFFERIES
Significant diversification
The 3 months correlation between Li Auto and JEFFERIES is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Li Auto and JEFFERIES GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JEFFERIES GROUP INC and Li Auto 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 Li Auto are associated (or correlated) with JEFFERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JEFFERIES GROUP INC has no effect on the direction of Li Auto i.e., Li Auto and JEFFERIES go up and down completely randomly.
Pair Corralation between Li Auto and JEFFERIES
Allowing for the 90-day total investment horizon Li Auto is expected to generate 23.39 times less return on investment than JEFFERIES. But when comparing it to its historical volatility, Li Auto is 13.91 times less risky than JEFFERIES. It trades about 0.03 of its potential returns per unit of risk. JEFFERIES GROUP INC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,956 in JEFFERIES GROUP INC on September 14, 2024 and sell it today you would earn a total of 184.00 from holding JEFFERIES GROUP INC or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 73.54% |
| Values | Daily Returns |
Li Auto vs. JEFFERIES GROUP INC
Performance |
| Timeline |
| Li Auto |
| JEFFERIES GROUP INC |
Li Auto and JEFFERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Li Auto and JEFFERIES
The main advantage of trading using opposite Li Auto and JEFFERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Li Auto position performs unexpectedly, JEFFERIES 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 JEFFERIES will offset losses from the drop in JEFFERIES's long position.The idea behind Li Auto and JEFFERIES GROUP INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| JEFFERIES vs. Li Auto | JEFFERIES vs. JJill Inc | JEFFERIES vs. Citi Trends | JEFFERIES vs. Victorias Secret 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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