Correlation Between DENTSPLY SIRONA and Jefferies Financial
Can any of the company-specific risk be diversified away by investing in both DENTSPLY SIRONA and Jefferies Financial 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 DENTSPLY SIRONA and Jefferies Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DENTSPLY SIRONA and Jefferies Financial Group, you can compare the effects of market volatilities on DENTSPLY SIRONA and Jefferies Financial 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 DENTSPLY SIRONA with a short position of Jefferies Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of DENTSPLY SIRONA and Jefferies Financial.
Diversification Opportunities for DENTSPLY SIRONA and Jefferies Financial
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DENTSPLY and Jefferies is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding DENTSPLY SIRONA and Jefferies Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jefferies Financial and DENTSPLY SIRONA 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 DENTSPLY SIRONA are associated (or correlated) with Jefferies Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jefferies Financial has no effect on the direction of DENTSPLY SIRONA i.e., DENTSPLY SIRONA and Jefferies Financial go up and down completely randomly.
Pair Corralation between DENTSPLY SIRONA and Jefferies Financial
Assuming the 90 days trading horizon DENTSPLY SIRONA is expected to generate 13.18 times less return on investment than Jefferies Financial. But when comparing it to its historical volatility, DENTSPLY SIRONA is 1.34 times less risky than Jefferies Financial. It trades about 0.01 of its potential returns per unit of risk. Jefferies Financial Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 19,237 in Jefferies Financial Group on October 27, 2024 and sell it today you would earn a total of 26,823 from holding Jefferies Financial Group or generate 139.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DENTSPLY SIRONA vs. Jefferies Financial Group
Performance |
| Timeline |
| DENTSPLY SIRONA |
| Jefferies Financial |
DENTSPLY SIRONA and Jefferies Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DENTSPLY SIRONA and Jefferies Financial
The main advantage of trading using opposite DENTSPLY SIRONA and Jefferies Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DENTSPLY SIRONA position performs unexpectedly, Jefferies Financial 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 Financial will offset losses from the drop in Jefferies Financial's long position.| DENTSPLY SIRONA vs. SK Telecom Co, | DENTSPLY SIRONA vs. Academy Sports and | DENTSPLY SIRONA vs. Charter Communications | DENTSPLY SIRONA vs. Pure Storage, |
| Jefferies Financial vs. Academy Sports and | Jefferies Financial vs. TAL Education Group | Jefferies Financial vs. Hospital Mater Dei | Jefferies Financial vs. CM Hospitalar SA |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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