Correlation Between Raymond James and Golden Metal
Can any of the company-specific risk be diversified away by investing in both Raymond James and Golden Metal 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 Raymond James and Golden Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raymond James Financial and Golden Metal Resources, you can compare the effects of market volatilities on Raymond James and Golden Metal 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 Raymond James with a short position of Golden Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raymond James and Golden Metal.
Diversification Opportunities for Raymond James and Golden Metal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Raymond and Golden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial and Golden Metal Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Metal Resources and Raymond James 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 Raymond James Financial are associated (or correlated) with Golden Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Metal Resources has no effect on the direction of Raymond James i.e., Raymond James and Golden Metal go up and down completely randomly.
Pair Corralation between Raymond James and Golden Metal
Assuming the 90 days trading horizon Raymond James is expected to generate 1.22 times less return on investment than Golden Metal. But when comparing it to its historical volatility, Raymond James Financial is 1.73 times less risky than Golden Metal. It trades about 0.29 of its potential returns per unit of risk. Golden Metal Resources is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,900 in Golden Metal Resources on November 2, 2024 and sell it today you would earn a total of 400.00 from holding Golden Metal Resources or generate 13.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Raymond James Financial vs. Golden Metal Resources
Performance |
| Timeline |
| Raymond James Financial |
| Golden Metal Resources |
Raymond James and Golden Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raymond James and Golden Metal
The main advantage of trading using opposite Raymond James and Golden Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James position performs unexpectedly, Golden Metal 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 Golden Metal will offset losses from the drop in Golden Metal's long position.| Raymond James vs. Grieg Seafood | Raymond James vs. Universal Display Corp | Raymond James vs. Associated British Foods | Raymond James vs. Leroy Seafood Group |
| Golden Metal vs. Ryanair Holdings plc | Golden Metal vs. Ross Stores | Golden Metal vs. Spirent Communications plc | Golden Metal vs. Zoom Video Communications |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |