Correlation Between Jefferies Financial and Sysorex

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

Diversification Opportunities for Jefferies Financial and Sysorex

0.0

Correlation Coefficient

Jefferies Financial  Sysorex

Pay attention - limited upside

The 3 months correlation between Jefferies and Sysorex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jefferies Financial Group and Sysorex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysorex 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 Sysorex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysorex has no effect on the direction of Jefferies Financial i.e., Jefferies Financial and Sysorex go up and down completely randomly.

Pair Corralation between Jefferies Financial and Sysorex

If you would invest  7,843  in Jefferies Financial Group on October 11, 2024 and sell it today you would earn a total of  170.00  from holding Jefferies Financial Group or generate 2.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Jefferies Financial Group  vs.  Sysorex

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.

Sysorex

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sysorex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Sysorex is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jefferies Financial and Sysorex

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

The idea behind Jefferies Financial Group and Sysorex 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.