Correlation Between JEFFERIES and Cisco Systems
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By analyzing existing cross correlation between JEFFERIES GROUP INC and Cisco Systems, you can compare the effects of market volatilities on JEFFERIES and Cisco Systems 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 Cisco Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of JEFFERIES and Cisco Systems.
Diversification Opportunities for JEFFERIES and Cisco Systems
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JEFFERIES and Cisco is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding JEFFERIES GROUP INC and Cisco Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cisco Systems 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 Cisco Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cisco Systems has no effect on the direction of JEFFERIES i.e., JEFFERIES and Cisco Systems go up and down completely randomly.
Pair Corralation between JEFFERIES and Cisco Systems
Assuming the 90 days trading horizon JEFFERIES GROUP INC is expected to under-perform the Cisco Systems. In addition to that, JEFFERIES is 1.93 times more volatile than Cisco Systems. It trades about -0.07 of its total potential returns per unit of risk. Cisco Systems is currently generating about 0.0 per unit of volatility. If you would invest 5,863 in Cisco Systems on September 12, 2024 and sell it today you would lose (4.00) from holding Cisco Systems or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
JEFFERIES GROUP INC vs. Cisco Systems
Performance |
| Timeline |
| JEFFERIES GROUP INC |
| Cisco Systems |
JEFFERIES and Cisco Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JEFFERIES and Cisco Systems
The main advantage of trading using opposite JEFFERIES and Cisco Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JEFFERIES position performs unexpectedly, Cisco Systems 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 Cisco Systems will offset losses from the drop in Cisco Systems' long position.| JEFFERIES vs. RBC Bearings Incorporated | JEFFERIES vs. Ambev SA ADR | JEFFERIES vs. Nyxoah | JEFFERIES vs. Keurig Dr Pepper |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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