Correlation Between Evercore Partners and Stonex
Can any of the company-specific risk be diversified away by investing in both Evercore Partners and Stonex 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 Evercore Partners and Stonex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evercore Partners and Stonex Group, you can compare the effects of market volatilities on Evercore Partners and Stonex 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 Evercore Partners with a short position of Stonex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evercore Partners and Stonex.
Diversification Opportunities for Evercore Partners and Stonex
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Evercore and Stonex is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Evercore Partners and Stonex Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stonex Group and Evercore Partners 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 Evercore Partners are associated (or correlated) with Stonex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stonex Group has no effect on the direction of Evercore Partners i.e., Evercore Partners and Stonex go up and down completely randomly.
Pair Corralation between Evercore Partners and Stonex
Considering the 90-day investment horizon Evercore Partners is expected to generate 1.38 times more return on investment than Stonex. However, Evercore Partners is 1.38 times more volatile than Stonex Group. It trades about 0.16 of its potential returns per unit of risk. Stonex Group is currently generating about 0.15 per unit of risk. If you would invest 20,052 in Evercore Partners on August 25, 2024 and sell it today you would earn a total of 11,083 from holding Evercore Partners or generate 55.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evercore Partners vs. Stonex Group
Performance |
| Timeline |
| Evercore Partners |
| Stonex Group |
Evercore Partners and Stonex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evercore Partners and Stonex
The main advantage of trading using opposite Evercore Partners and Stonex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evercore Partners position performs unexpectedly, Stonex 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 Stonex will offset losses from the drop in Stonex's long position.| Evercore Partners vs. PJT Partners | Evercore Partners vs. Moelis Co | Evercore Partners vs. Perella Weinberg Partners | Evercore Partners vs. Jefferies Financial Group |
| Stonex vs. PJT Partners | Stonex vs. Houlihan Lokey | Stonex vs. Stifel Financial | Stonex vs. Evercore Partners |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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