Correlation Between Raymond James and Mitie Group
Can any of the company-specific risk be diversified away by investing in both Raymond James and Mitie Group 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 Mitie Group 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 Mitie Group PLC, you can compare the effects of market volatilities on Raymond James and Mitie Group 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 Mitie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raymond James and Mitie Group.
Diversification Opportunities for Raymond James and Mitie Group
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Raymond and Mitie is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial and Mitie Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitie Group PLC 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 Mitie Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitie Group PLC has no effect on the direction of Raymond James i.e., Raymond James and Mitie Group go up and down completely randomly.
Pair Corralation between Raymond James and Mitie Group
Assuming the 90 days trading horizon Raymond James Financial is expected to generate 1.16 times more return on investment than Mitie Group. However, Raymond James is 1.16 times more volatile than Mitie Group PLC. It trades about 0.27 of its potential returns per unit of risk. Mitie Group PLC is currently generating about 0.16 per unit of risk. If you would invest 15,469 in Raymond James Financial on November 3, 2024 and sell it today you would earn a total of 1,632 from holding Raymond James Financial or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Raymond James Financial vs. Mitie Group PLC
Performance |
| Timeline |
| Raymond James Financial |
| Mitie Group PLC |
Raymond James and Mitie Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raymond James and Mitie Group
The main advantage of trading using opposite Raymond James and Mitie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James position performs unexpectedly, Mitie Group 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 Mitie Group will offset losses from the drop in Mitie Group's long position.| Raymond James vs. Air Products Chemicals | Raymond James vs. MyHealthChecked Plc | Raymond James vs. Abingdon Health Plc | Raymond James vs. Spire Healthcare Group |
| Mitie Group vs. Synchrony Financial | Mitie Group vs. Air Products Chemicals | Mitie Group vs. Alaska Air Group | Mitie Group vs. Fair Oaks Income |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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