Correlation Between Tyler Technologies, and Jefferies Financial
Can any of the company-specific risk be diversified away by investing in both Tyler Technologies, 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 Tyler Technologies, and Jefferies Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tyler Technologies, and Jefferies Financial Group, you can compare the effects of market volatilities on Tyler Technologies, 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 Tyler Technologies, with a short position of Jefferies Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tyler Technologies, and Jefferies Financial.
Diversification Opportunities for Tyler Technologies, and Jefferies Financial
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tyler and Jefferies is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Tyler Technologies, and Jefferies Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jefferies Financial and Tyler Technologies, 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 Tyler Technologies, 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 Tyler Technologies, i.e., Tyler Technologies, and Jefferies Financial go up and down completely randomly.
Pair Corralation between Tyler Technologies, and Jefferies Financial
Assuming the 90 days trading horizon Tyler Technologies, is expected to under-perform the Jefferies Financial. But the stock apears to be less risky and, when comparing its historical volatility, Tyler Technologies, is 1.61 times less risky than Jefferies Financial. The stock trades about -0.24 of its potential returns per unit of risk. The Jefferies Financial Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. 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 |
Tyler Technologies, vs. Jefferies Financial Group
Performance |
Timeline |
Tyler Technologies, |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Jefferies Financial |
Tyler Technologies, and Jefferies Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tyler Technologies, and Jefferies Financial
The main advantage of trading using opposite Tyler Technologies, and Jefferies Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tyler Technologies, 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.Tyler Technologies, vs. Taiwan Semiconductor Manufacturing | Tyler Technologies, vs. Apple Inc | Tyler Technologies, vs. Alibaba Group Holding | Tyler Technologies, vs. Banco Santander Chile |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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