Correlation Between GRIID Infrastructure and Stifel Financial

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Can any of the company-specific risk be diversified away by investing in both GRIID Infrastructure and Stifel Financial 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 GRIID Infrastructure and Stifel Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRIID Infrastructure Warrant and Stifel Financial Corp, you can compare the effects of market volatilities on GRIID Infrastructure and Stifel Financial 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 GRIID Infrastructure with a short position of Stifel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIID Infrastructure and Stifel Financial.

Diversification Opportunities for GRIID Infrastructure and Stifel Financial

-0.48
  Correlation Coefficient

Very good diversification

The 3 months correlation between GRIID and Stifel is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding GRIID Infrastructure Warrant and Stifel Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stifel Financial Corp and GRIID Infrastructure 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 GRIID Infrastructure Warrant are associated (or correlated) with Stifel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stifel Financial Corp has no effect on the direction of GRIID Infrastructure i.e., GRIID Infrastructure and Stifel Financial go up and down completely randomly.

Pair Corralation between GRIID Infrastructure and Stifel Financial

Assuming the 90 days horizon GRIID Infrastructure Warrant is expected to generate 18.05 times more return on investment than Stifel Financial. However, GRIID Infrastructure is 18.05 times more volatile than Stifel Financial Corp. It trades about 0.06 of its potential returns per unit of risk. Stifel Financial Corp is currently generating about 0.03 per unit of risk. If you would invest  12.00  in GRIID Infrastructure Warrant on August 27, 2024 and sell it today you would lose (9.60) from holding GRIID Infrastructure Warrant or give up 80.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy34.51%
ValuesDaily Returns

GRIID Infrastructure Warrant  vs.  Stifel Financial Corp

 Performance 
       Timeline  
GRIID Infrastructure 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Modest
Over the last 90 days GRIID Infrastructure Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly conflicting forward indicators, GRIID Infrastructure showed solid returns over the last few months and may actually be approaching a breakup point.
Stifel Financial Corp 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Stifel Financial Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Stifel Financial is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

GRIID Infrastructure and Stifel Financial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GRIID Infrastructure and Stifel Financial

The main advantage of trading using opposite GRIID Infrastructure and Stifel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIID Infrastructure position performs unexpectedly, Stifel Financial 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 Stifel Financial will offset losses from the drop in Stifel Financial's long position.
The idea behind GRIID Infrastructure Warrant and Stifel Financial Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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