Correlation Between Jefferies Financial and Tyler Technologies,

Can any of the company-specific risk be diversified away by investing in both Jefferies Financial and Tyler Technologies, 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 Jefferies Financial and Tyler Technologies, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jefferies Financial Group and Tyler Technologies,, you can compare the effects of market volatilities on Jefferies Financial and Tyler Technologies, 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 Financial with a short position of Tyler Technologies,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jefferies Financial and Tyler Technologies,.

Diversification Opportunities for Jefferies Financial and Tyler Technologies,

0.89

Correlation Coefficient

Jefferies Financial  Tyler Technologies,

Very poor diversification

The 3 months correlation between Jefferies and Tyler is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jefferies Financial Group and Tyler Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tyler Technologies, and Jefferies Financial 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 Financial Group are associated (or correlated) with Tyler Technologies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tyler Technologies, has no effect on the direction of Jefferies Financial i.e., Jefferies Financial and Tyler Technologies, go up and down completely randomly.

Pair Corralation between Jefferies Financial and Tyler Technologies,

Assuming the 90 days trading horizon Jefferies Financial Group is expected to generate 1.61 times more return on investment than Tyler Technologies,. However, Jefferies Financial is 1.61 times more volatile than Tyler Technologies,. It trades about 0.02 of its potential returns per unit of risk. Tyler Technologies, is currently generating about -0.24 per unit of risk. If you would invest  48,575  in Jefferies Financial Group on October 8, 2024 and sell it today you would earn a total of  131.00  from holding Jefferies Financial Group or generate 0.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	88.24%
Values	Daily Returns

Jefferies Financial Group  vs.  Tyler Technologies,

Jefferies Financial

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jefferies Financial Group are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Jefferies Financial sustained solid returns over the last few months and may actually be approaching a breakup point.

Tyler Technologies,

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Tyler Technologies, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak basic indicators, Tyler Technologies, sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jefferies Financial and Tyler Technologies,

The main advantage of trading using opposite Jefferies Financial and Tyler Technologies, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jefferies Financial position performs unexpectedly, Tyler Technologies, 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 Tyler Technologies, will offset losses from the drop in Tyler Technologies,'s long position.

The idea behind Jefferies Financial Group and Tyler Technologies, 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.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.