Correlation Between Cembra Money and Raymond James
Can any of the company-specific risk be diversified away by investing in both Cembra Money 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 Cembra Money and Raymond James into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cembra Money Bank and Raymond James Financial, you can compare the effects of market volatilities on Cembra Money 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 Cembra Money with a short position of Raymond James. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cembra Money and Raymond James.
Diversification Opportunities for Cembra Money and Raymond James
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cembra and Raymond is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Cembra Money Bank 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 Cembra Money 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 Cembra Money Bank 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 Cembra Money i.e., Cembra Money and Raymond James go up and down completely randomly.
Pair Corralation between Cembra Money and Raymond James
Assuming the 90 days trading horizon Cembra Money is expected to generate 1.49 times less return on investment than Raymond James. But when comparing it to its historical volatility, Cembra Money Bank is 1.68 times less risky than Raymond James. It trades about 0.13 of its potential returns per unit of risk. Raymond James Financial is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 10,943 in Raymond James Financial on November 3, 2024 and sell it today you would earn a total of 6,158 from holding Raymond James Financial or generate 56.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.09% |
| Values | Daily Returns |
Cembra Money Bank vs. Raymond James Financial
Performance |
| Timeline |
| Cembra Money Bank |
| Raymond James Financial |
Cembra Money and Raymond James Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cembra Money and Raymond James
The main advantage of trading using opposite Cembra Money and Raymond James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cembra Money 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.| Cembra Money vs. Alliance Data Systems | Cembra Money vs. International Biotechnology Trust | Cembra Money vs. Rosslyn Data Technologies | Cembra Money vs. CleanTech Lithium plc |
| Raymond James vs. Samsung Electronics Co | Raymond James vs. Samsung Electronics Co | Raymond James vs. Toyota Motor Corp | Raymond James vs. SoftBank Group Corp |
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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