Correlation Between Saratoga Investment and Jefferies Financial
Can any of the company-specific risk be diversified away by investing in both Saratoga Investment 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 Saratoga Investment and Jefferies Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saratoga Investment Corp and Jefferies Financial Group, you can compare the effects of market volatilities on Saratoga Investment 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 Saratoga Investment with a short position of Jefferies Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saratoga Investment and Jefferies Financial.
Diversification Opportunities for Saratoga Investment and Jefferies Financial
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saratoga and Jefferies is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Saratoga Investment Corp and Jefferies Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jefferies Financial and Saratoga Investment 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 Saratoga Investment Corp 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 Saratoga Investment i.e., Saratoga Investment and Jefferies Financial go up and down completely randomly.
Pair Corralation between Saratoga Investment and Jefferies Financial
Considering the 90-day investment horizon Saratoga Investment Corp is expected to generate 0.44 times more return on investment than Jefferies Financial. However, Saratoga Investment Corp is 2.25 times less risky than Jefferies Financial. It trades about -0.02 of its potential returns per unit of risk. Jefferies Financial Group is currently generating about -0.22 per unit of risk. If you would invest 2,283 in Saratoga Investment Corp on January 20, 2024 and sell it today you would lose (10.00) from holding Saratoga Investment Corp or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Saratoga Investment Corp vs. Jefferies Financial Group
Performance |
| Timeline |
| Saratoga Investment Corp |
| Jefferies Financial |
Saratoga Investment and Jefferies Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saratoga Investment and Jefferies Financial
The main advantage of trading using opposite Saratoga Investment and Jefferies Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saratoga Investment 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.| Saratoga Investment vs. New Mountain Finance | Saratoga Investment vs. BlackRock TCP Capital | Saratoga Investment vs. Carlyle Secured Lending | Saratoga Investment vs. Sixth Street Specialty |
| Jefferies Financial vs. Lazard | Jefferies Financial vs. PJT Partners | Jefferies Financial vs. Moelis Co | Jefferies Financial vs. Houlihan Lokey |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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