Correlation Between Plano Plano and Jefferies Financial

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

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

Diversification Opportunities for Plano Plano and Jefferies Financial

-0.77

Correlation Coefficient

Plano Plano  Jefferies Financial

Pay attention - limited upside

The 3 months correlation between Plano and Jefferies is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Plano Plano Desenvolvimento and Jefferies Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jefferies Financial and Plano Plano 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 Plano Plano Desenvolvimento 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 Plano Plano i.e., Plano Plano and Jefferies Financial go up and down completely randomly.

Pair Corralation between Plano Plano and Jefferies Financial

Assuming the 90 days trading horizon Plano Plano is expected to generate 5.95 times less return on investment than Jefferies Financial. In addition to that, Plano Plano is 1.18 times more volatile than Jefferies Financial Group. It trades about 0.02 of its total potential returns per unit of risk. Jefferies Financial Group is currently generating about 0.12 per unit of volatility. If you would invest  14,619  in Jefferies Financial Group on October 24, 2024 and sell it today you would earn a total of  31,441  from holding Jefferies Financial Group or generate 215.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.98%
Values	Daily Returns

Plano Plano Desenvolvimento  vs.  Jefferies Financial Group

Plano Plano Desenvol

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Plano Plano Desenvolvimento has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Jefferies Financial

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jefferies Financial Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain technical and fundamental indicators, Jefferies Financial sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Plano Plano and Jefferies Financial

The main advantage of trading using opposite Plano Plano and Jefferies Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plano Plano 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.

The idea behind Plano Plano Desenvolvimento and Jefferies Financial Group 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.