Correlation Between Jefferies Financial and Evercore Partners

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

Diversification Opportunities for Jefferies Financial and Evercore Partners

0.93

Correlation Coefficient

Jefferies Financial  Evercore Partners

Almost no diversification

The 3 months correlation between Jefferies and Evercore is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jefferies Financial Group and Evercore Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evercore Partners 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 Evercore Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evercore Partners has no effect on the direction of Jefferies Financial i.e., Jefferies Financial and Evercore Partners go up and down completely randomly.

Pair Corralation between Jefferies Financial and Evercore Partners

Considering the 90-day investment horizon Jefferies Financial is expected to generate 2.21 times less return on investment than Evercore Partners. But when comparing it to its historical volatility, Jefferies Financial Group is 1.07 times less risky than Evercore Partners. It trades about 0.13 of its potential returns per unit of risk. Evercore Partners is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  21,111  in Evercore Partners on May 3, 2025 and sell it today you would earn a total of  8,290  from holding Evercore Partners or generate 39.27% return on investment over 90 days.

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

Jefferies Financial Group  vs.  Evercore Partners

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 nearly weak technical and fundamental indicators, Jefferies Financial reported solid returns over the last few months and may actually be approaching a breakup point.

Evercore Partners

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Evercore Partners are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Evercore Partners reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jefferies Financial and Evercore Partners

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

The idea behind Jefferies Financial Group and Evercore Partners 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.