Correlation Between Stifel Financial and PHH

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Can any of the company-specific risk be diversified away by investing in both Stifel Financial and PHH 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 Stifel Financial and PHH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and PHH Corporation, you can compare the effects of market volatilities on Stifel Financial and PHH 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 Stifel Financial with a short position of PHH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and PHH.

Diversification Opportunities for Stifel Financial and PHH

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Stifel and PHH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and PHH Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHH Corporation and Stifel 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 Stifel Financial are associated (or correlated) with PHH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHH Corporation has no effect on the direction of Stifel Financial i.e., Stifel Financial and PHH go up and down completely randomly.

Pair Corralation between Stifel Financial and PHH

If you would invest  7,590  in Stifel Financial on December 29, 2023 and sell it today you would earn a total of  77.00  from holding Stifel Financial or generate 1.01% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Stifel Financial  vs.  PHH Corp.

 Performance 
       Timeline  
Stifel Financial 

Risk-Adjusted Performance

13 of 100

 
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Good
Compared to the overall equity markets, risk-adjusted returns on investments in Stifel Financial are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal technical and fundamental indicators, Stifel Financial reported solid returns over the last few months and may actually be approaching a breakup point.
PHH Corporation 

Risk-Adjusted Performance

0 of 100

 
Low
 
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Very Weak
Over the last 90 days PHH Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, PHH is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Stifel Financial and PHH Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Stifel Financial and PHH

The main advantage of trading using opposite Stifel Financial and PHH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, PHH 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 PHH will offset losses from the drop in PHH's long position.
The idea behind Stifel Financial and PHH Corporation 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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