Correlation Between MAHLE Metal and Jefferies Financial

Can any of the company-specific risk be diversified away by investing in both MAHLE Metal 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 MAHLE Metal and Jefferies Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MAHLE Metal Leve and Jefferies Financial Group, you can compare the effects of market volatilities on MAHLE Metal 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 MAHLE Metal with a short position of Jefferies Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAHLE Metal and Jefferies Financial.

Diversification Opportunities for MAHLE Metal and Jefferies Financial

0.0

Correlation Coefficient

MAHLE Metal  Jefferies Financial

Pay attention - limited upside

The 3 months correlation between MAHLE and Jefferies is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAHLE Metal Leve and Jefferies Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jefferies Financial and MAHLE Metal 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 MAHLE Metal Leve 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 MAHLE Metal i.e., MAHLE Metal and Jefferies Financial go up and down completely randomly.

Pair Corralation between MAHLE Metal and Jefferies Financial

Assuming the 90 days trading horizon MAHLE Metal is expected to generate 16.85 times less return on investment than Jefferies Financial. But when comparing it to its historical volatility, MAHLE Metal Leve is 1.54 times less risky than Jefferies Financial. It trades about 0.01 of its potential returns per unit of risk. Jefferies Financial Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. 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	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MAHLE Metal Leve  vs.  Jefferies Financial Group

MAHLE Metal Leve

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MAHLE Metal Leve are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, MAHLE Metal is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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.

Pair Trading with MAHLE Metal and Jefferies Financial

The main advantage of trading using opposite MAHLE Metal and Jefferies Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAHLE Metal 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.

The idea behind MAHLE Metal Leve and Jefferies Financial Group 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.