Correlation Between Stifel Financial and Raymond James
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Raymond James 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 Raymond James into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Raymond James Financial, you can compare the effects of market volatilities on Stifel Financial and Raymond James 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 Raymond James. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Raymond James.
Diversification Opportunities for Stifel Financial and Raymond James
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stifel and Raymond is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Raymond James Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raymond James Financial 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 Raymond James. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raymond James Financial has no effect on the direction of Stifel Financial i.e., Stifel Financial and Raymond James go up and down completely randomly.
Pair Corralation between Stifel Financial and Raymond James
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 1.06 times more return on investment than Raymond James. However, Stifel Financial is 1.06 times more volatile than Raymond James Financial. It trades about 0.17 of its potential returns per unit of risk. Raymond James Financial is currently generating about 0.17 per unit of risk. If you would invest 5,688 in Stifel Financial on January 19, 2024 and sell it today you would earn a total of 1,814 from holding Stifel Financial or generate 31.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stifel Financial vs. Raymond James Financial
Performance |
| Timeline |
| Stifel Financial |
| Raymond James Financial |
Stifel Financial and Raymond James Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Raymond James
The main advantage of trading using opposite Stifel Financial and Raymond James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Raymond James 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 Raymond James will offset losses from the drop in Raymond James' long position.| Stifel Financial vs. Riot Blockchain | Stifel Financial vs. Marathon Digital Holdings | Stifel Financial vs. Hut 8 Corp | Stifel Financial vs. CleanSpark |
| Raymond James vs. Riot Blockchain | Raymond James vs. Marathon Digital Holdings | Raymond James vs. Hut 8 Corp | Raymond James vs. CleanSpark |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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