Correlation Between JEFFERIES and Park Ohio
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By analyzing existing cross correlation between JEFFERIES GROUP INC and Park Ohio Holdings, you can compare the effects of market volatilities on JEFFERIES and Park Ohio 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 with a short position of Park Ohio. Check out your portfolio center. Please also check ongoing floating volatility patterns of JEFFERIES and Park Ohio.
Diversification Opportunities for JEFFERIES and Park Ohio
Excellent diversification
The 3 months correlation between JEFFERIES and Park is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding JEFFERIES GROUP INC and Park Ohio Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Ohio Holdings and JEFFERIES 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 GROUP INC are associated (or correlated) with Park Ohio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Ohio Holdings has no effect on the direction of JEFFERIES i.e., JEFFERIES and Park Ohio go up and down completely randomly.
Pair Corralation between JEFFERIES and Park Ohio
Assuming the 90 days trading horizon JEFFERIES is expected to generate 19.4 times less return on investment than Park Ohio. But when comparing it to its historical volatility, JEFFERIES GROUP INC is 2.81 times less risky than Park Ohio. It trades about 0.01 of its potential returns per unit of risk. Park Ohio Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,540 in Park Ohio Holdings on September 3, 2024 and sell it today you would earn a total of 677.00 from holding Park Ohio Holdings or generate 26.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.52% |
| Values | Daily Returns |
JEFFERIES GROUP INC vs. Park Ohio Holdings
Performance |
| Timeline |
| JEFFERIES GROUP INC |
| Park Ohio Holdings |
JEFFERIES and Park Ohio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JEFFERIES and Park Ohio
The main advantage of trading using opposite JEFFERIES and Park Ohio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JEFFERIES position performs unexpectedly, Park Ohio 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 Park Ohio will offset losses from the drop in Park Ohio's long position.| JEFFERIES vs. AEP TEX INC | JEFFERIES vs. US BANK NATIONAL | JEFFERIES vs. Jackson Financial | JEFFERIES vs. MetLife |
| Park Ohio vs. Hurco Companies | Park Ohio vs. Enerpac Tool Group | Park Ohio vs. China Yuchai International | Park Ohio vs. Luxfer Holdings PLC |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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