Correlation Between Jefferies Financial and Darden Restaurants,

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

Diversification Opportunities for Jefferies Financial and Darden Restaurants,

0.56

Correlation Coefficient

Jefferies Financial  Darden Restaurants,

Very weak diversification

The 3 months correlation between Jefferies and Darden is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Jefferies Financial Group and Darden Restaurants, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Darden Restaurants, 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 Darden Restaurants,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Darden Restaurants, has no effect on the direction of Jefferies Financial i.e., Jefferies Financial and Darden Restaurants, go up and down completely randomly.

Pair Corralation between Jefferies Financial and Darden Restaurants,

Assuming the 90 days trading horizon Jefferies Financial Group is expected to generate 10.76 times more return on investment than Darden Restaurants,. However, Jefferies Financial is 10.76 times more volatile than Darden Restaurants,. It trades about 0.04 of its potential returns per unit of risk. Darden Restaurants, is currently generating about 0.21 per unit of risk. If you would invest  30,600  in Jefferies Financial Group on April 25, 2025 and sell it today you would earn a total of  240.00  from holding Jefferies Financial Group or generate 0.78% return on investment over 90 days.

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

Jefferies Financial Group  vs.  Darden Restaurants,

Jefferies Financial

Risk-Adjusted Performance

OK

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. 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.

Darden Restaurants,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Darden Restaurants, are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Darden Restaurants, may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Jefferies Financial and Darden Restaurants,

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

The idea behind Jefferies Financial Group and Darden Restaurants, 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.