Correlation Between Jefferies Financial and Metalfrio Solutions
Can any of the company-specific risk be diversified away by investing in both Jefferies Financial and Metalfrio Solutions 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 Metalfrio Solutions 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 Metalfrio Solutions SA, you can compare the effects of market volatilities on Jefferies Financial and Metalfrio Solutions 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 Metalfrio Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jefferies Financial and Metalfrio Solutions.
Diversification Opportunities for Jefferies Financial and Metalfrio Solutions
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jefferies and Metalfrio is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jefferies Financial Group and Metalfrio Solutions SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metalfrio Solutions 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 Metalfrio Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metalfrio Solutions has no effect on the direction of Jefferies Financial i.e., Jefferies Financial and Metalfrio Solutions go up and down completely randomly.
Pair Corralation between Jefferies Financial and Metalfrio Solutions
Assuming the 90 days trading horizon Jefferies Financial Group is expected to under-perform the Metalfrio Solutions. In addition to that, Jefferies Financial is 1.97 times more volatile than Metalfrio Solutions SA. It trades about -0.1 of its total potential returns per unit of risk. Metalfrio Solutions SA is currently generating about -0.13 per unit of volatility. If you would invest 22,999 in Metalfrio Solutions SA on August 31, 2025 and sell it today you would lose (2,000) from holding Metalfrio Solutions SA or give up 8.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Jefferies Financial Group vs. Metalfrio Solutions SA
Performance |
| Timeline |
| Jefferies Financial |
| Metalfrio Solutions |
Jefferies Financial and Metalfrio Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jefferies Financial and Metalfrio Solutions
The main advantage of trading using opposite Jefferies Financial and Metalfrio Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jefferies Financial position performs unexpectedly, Metalfrio Solutions 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 Metalfrio Solutions will offset losses from the drop in Metalfrio Solutions' long position.| Jefferies Financial vs. Dell Technologies | Jefferies Financial vs. Nordon Indstrias Metalrgicas | Jefferies Financial vs. Eastman Chemical | Jefferies Financial vs. Bio Techne |
| Metalfrio Solutions vs. WEG SA | Metalfrio Solutions vs. Automatic Data Processing | Metalfrio Solutions vs. Neurocrine Biosciences | Metalfrio Solutions vs. SP Global |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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