Correlation Between ATT and JEFFERIES
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By analyzing existing cross correlation between ATT Inc and JEFFERIES GROUP INC, you can compare the effects of market volatilities on ATT 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 ATT with a short position of JEFFERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and JEFFERIES.
Diversification Opportunities for ATT and JEFFERIES
Very good diversification
The 3 months correlation between ATT and JEFFERIES is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc 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 ATT 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 ATT Inc 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 ATT i.e., ATT and JEFFERIES go up and down completely randomly.
Pair Corralation between ATT and JEFFERIES
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.63 times more return on investment than JEFFERIES. However, ATT Inc is 1.58 times less risky than JEFFERIES. It trades about 0.18 of its potential returns per unit of risk. JEFFERIES GROUP INC is currently generating about -0.04 per unit of risk. If you would invest 2,215 in ATT Inc on September 13, 2024 and sell it today you would earn a total of 121.00 from holding ATT Inc or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
ATT Inc vs. JEFFERIES GROUP INC
Performance |
| Timeline |
| ATT Inc |
| JEFFERIES GROUP INC |
ATT and JEFFERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and JEFFERIES
The main advantage of trading using opposite ATT and JEFFERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT 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 ATT Inc 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. Capital Clean Energy | JEFFERIES vs. NuRAN Wireless | JEFFERIES vs. NRG Energy | JEFFERIES vs. Tesla Inc |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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