Correlation Between Jefferies Financial and GiveMePower Corp

Can any of the company-specific risk be diversified away by investing in both Jefferies Financial and GiveMePower Corp 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 GiveMePower Corp 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 GiveMePower Corp, you can compare the effects of market volatilities on Jefferies Financial and GiveMePower Corp 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 GiveMePower Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jefferies Financial and GiveMePower Corp.

Diversification Opportunities for Jefferies Financial and GiveMePower Corp

-0.79

Correlation Coefficient

Jefferies Financial  GiveMePower Corp

Pay attention - limited upside

The 3 months correlation between Jefferies and GiveMePower is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jefferies Financial Group and GiveMePower Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GiveMePower Corp 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 GiveMePower Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GiveMePower Corp has no effect on the direction of Jefferies Financial i.e., Jefferies Financial and GiveMePower Corp go up and down completely randomly.

Pair Corralation between Jefferies Financial and GiveMePower Corp

Considering the 90-day investment horizon Jefferies Financial is expected to generate 55.7 times less return on investment than GiveMePower Corp. But when comparing it to its historical volatility, Jefferies Financial Group is 16.0 times less risky than GiveMePower Corp. It trades about 0.07 of its potential returns per unit of risk. GiveMePower Corp is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  0.47  in GiveMePower Corp on October 11, 2024 and sell it today you would earn a total of  0.51  from holding GiveMePower Corp or generate 108.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Jefferies Financial Group  vs.  GiveMePower Corp

Jefferies Financial

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jefferies Financial Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Jefferies Financial reported solid returns over the last few months and may actually be approaching a breakup point.

GiveMePower Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GiveMePower Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, GiveMePower Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jefferies Financial and GiveMePower Corp

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

The idea behind Jefferies Financial Group and GiveMePower Corp 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.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.