Correlation Between Jefferies Financial and Amazon

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Jefferies Financial and Amazon 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 Amazon 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 Amazon Inc, you can compare the effects of market volatilities on Jefferies Financial and Amazon 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 Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jefferies Financial and Amazon.

Diversification Opportunities for Jefferies Financial and Amazon

-0.6
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Jefferies and Amazon is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jefferies Financial Group and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc 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 Amazon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Inc has no effect on the direction of Jefferies Financial i.e., Jefferies Financial and Amazon go up and down completely randomly.

Pair Corralation between Jefferies Financial and Amazon

Considering the 90-day investment horizon Jefferies Financial Group is expected to generate 0.6 times more return on investment than Amazon. However, Jefferies Financial Group is 1.66 times less risky than Amazon. It trades about 0.23 of its potential returns per unit of risk. Amazon Inc is currently generating about -0.05 per unit of risk. If you would invest  3,413  in Jefferies Financial Group on September 1, 2022 and sell it today you would earn a total of  386.00  from holding Jefferies Financial Group or generate 11.31% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Jefferies Financial Group  vs.  Amazon Inc

 Performance (%) 
       Timeline  
Jefferies Financial 
Jefferies Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Jefferies Financial Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Jefferies Financial exhibited solid returns over the last few months and may actually be approaching a breakup point.

Jefferies Price Channel

Amazon Inc 
Amazon Performance
0 of 100
Over the last 90 days Amazon Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2022. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Amazon Price Channel

Jefferies Financial and Amazon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jefferies Financial and Amazon

The main advantage of trading using opposite Jefferies Financial and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jefferies Financial position performs unexpectedly, Amazon 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 Amazon will offset losses from the drop in Amazon's long position.
Jefferies Financial vs. Morgan Stanley
Jefferies Financial vs. The Charles Schwab
Jefferies Financial vs. Goldman Sachs Group
Jefferies Financial vs. Citic Securities Co
The idea behind Jefferies Financial Group and Amazon Inc 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.
Amazon vs. Groupon Cl A
Amazon vs. Aarons Holdings
Amazon vs. American Eagle Outfitters
Amazon vs. Abercrombie Fitch
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go