Correlation Between Jefferies Financial and Caesars Entertainment,

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

Diversification Opportunities for Jefferies Financial and Caesars Entertainment,

0.37

Correlation Coefficient

Jefferies Financial  Caesars Entertainment,

Weak diversification

The 3 months correlation between Jefferies and Caesars is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jefferies Financial Group and Caesars Entertainment, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caesars Entertainment, 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 Caesars Entertainment,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caesars Entertainment, has no effect on the direction of Jefferies Financial i.e., Jefferies Financial and Caesars Entertainment, go up and down completely randomly.

Pair Corralation between Jefferies Financial and Caesars Entertainment,

Assuming the 90 days trading horizon Jefferies Financial Group is expected to generate 1.75 times more return on investment than Caesars Entertainment,. However, Jefferies Financial is 1.75 times more volatile than Caesars Entertainment,. It trades about 0.16 of its potential returns per unit of risk. Caesars Entertainment, is currently generating about 0.09 per unit of risk. If you would invest  24,806  in Jefferies Financial Group on April 22, 2025 and sell it today you would earn a total of  6,034  from holding Jefferies Financial Group or generate 24.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Jefferies Financial Group  vs.  Caesars Entertainment,

Jefferies Financial

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jefferies Financial Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Jefferies Financial sustained solid returns over the last few months and may actually be approaching a breakup point.

Caesars Entertainment,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Caesars Entertainment, are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Caesars Entertainment, may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Jefferies Financial and Caesars Entertainment,

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

The idea behind Jefferies Financial Group and Caesars Entertainment, 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.