Correlation Between Raymond James and Spire Healthcare
Can any of the company-specific risk be diversified away by investing in both Raymond James and Spire Healthcare 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 Spire Healthcare 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 Spire Healthcare Group, you can compare the effects of market volatilities on Raymond James and Spire Healthcare 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 Spire Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raymond James and Spire Healthcare.
Diversification Opportunities for Raymond James and Spire Healthcare
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Raymond and Spire is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial and Spire Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spire Healthcare 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 Spire Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spire Healthcare has no effect on the direction of Raymond James i.e., Raymond James and Spire Healthcare go up and down completely randomly.
Pair Corralation between Raymond James and Spire Healthcare
Assuming the 90 days trading horizon Raymond James Financial is expected to under-perform the Spire Healthcare. In addition to that, Raymond James is 1.83 times more volatile than Spire Healthcare Group. It trades about -0.03 of its total potential returns per unit of risk. Spire Healthcare Group is currently generating about 0.13 per unit of volatility. If you would invest 22,300 in Spire Healthcare Group on October 12, 2024 and sell it today you would earn a total of 600.00 from holding Spire Healthcare Group or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.21% |
| Values | Daily Returns |
Raymond James Financial vs. Spire Healthcare Group
Performance |
| Timeline |
| Raymond James Financial |
| Spire Healthcare |
Raymond James and Spire Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raymond James and Spire Healthcare
The main advantage of trading using opposite Raymond James and Spire Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James position performs unexpectedly, Spire Healthcare 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 Spire Healthcare will offset losses from the drop in Spire Healthcare's long position.| Raymond James vs. National Beverage Corp | Raymond James vs. Smarttech247 Group PLC | Raymond James vs. MoneysupermarketCom Group PLC | Raymond James vs. Take Two Interactive Software |
| Spire Healthcare vs. Raymond James Financial | Spire Healthcare vs. National Beverage Corp | Spire Healthcare vs. Tetragon Financial Group | Spire Healthcare vs. FinecoBank SpA |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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