Correlation Between BGC and Raymond James
Can any of the company-specific risk be diversified away by investing in both BGC 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 BGC and Raymond James into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGC Group and Raymond James Financial, you can compare the effects of market volatilities on BGC 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 BGC with a short position of Raymond James. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGC and Raymond James.
Diversification Opportunities for BGC and Raymond James
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between BGC and Raymond is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding BGC Group 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 BGC 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 BGC Group 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 BGC i.e., BGC and Raymond James go up and down completely randomly.
Pair Corralation between BGC and Raymond James
Considering the 90-day investment horizon BGC Group is expected to generate 36.52 times more return on investment than Raymond James. However, BGC is 36.52 times more volatile than Raymond James Financial. It trades about 0.19 of its potential returns per unit of risk. Raymond James Financial is currently generating about 0.24 per unit of risk. If you would invest 914.00 in BGC Group on August 24, 2024 and sell it today you would earn a total of 102.00 from holding BGC Group or generate 11.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BGC Group vs. Raymond James Financial
Performance |
| Timeline |
| BGC Group |
| Raymond James Financial |
BGC and Raymond James Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGC and Raymond James
The main advantage of trading using opposite BGC and Raymond James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGC 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.| BGC vs. Timken Company | BGC vs. Western Copper and | BGC vs. World Houseware Limited | BGC vs. United Guardian |
| Raymond James vs. Washington Federal | Raymond James vs. Truist Financial | Raymond James vs. The Charles Schwab | Raymond James vs. Associated Banc 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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