Correlation Between Robinhood Markets and Stifel Financial
Can any of the company-specific risk be diversified away by investing in both Robinhood Markets 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 Robinhood Markets and Stifel Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robinhood Markets and Stifel Financial Corp, you can compare the effects of market volatilities on Robinhood Markets 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 Robinhood Markets with a short position of Stifel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinhood Markets and Stifel Financial.
Diversification Opportunities for Robinhood Markets and Stifel Financial
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Robinhood and Stifel is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Robinhood Markets 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 Robinhood Markets 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 Robinhood Markets 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 Robinhood Markets i.e., Robinhood Markets and Stifel Financial go up and down completely randomly.
Pair Corralation between Robinhood Markets and Stifel Financial
Given the investment horizon of 90 days Robinhood Markets is expected to generate 4.09 times more return on investment than Stifel Financial. However, Robinhood Markets is 4.09 times more volatile than Stifel Financial Corp. It trades about 0.24 of its potential returns per unit of risk. Stifel Financial Corp is currently generating about -0.15 per unit of risk. If you would invest 2,788 in Robinhood Markets on August 27, 2024 and sell it today you would earn a total of 877.00 from holding Robinhood Markets or generate 31.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Robinhood Markets vs. Stifel Financial Corp
Performance |
| Timeline |
| Robinhood Markets |
| Stifel Financial Corp |
Robinhood Markets and Stifel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robinhood Markets and Stifel Financial
The main advantage of trading using opposite Robinhood Markets and Stifel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinhood Markets 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.| Robinhood Markets vs. Crowdstrike Holdings | Robinhood Markets vs. Palantir Technologies | Robinhood Markets vs. Cloudflare | Robinhood Markets vs. Adobe Systems Incorporated |
| Stifel Financial vs. Stifel Financial Corp | Stifel Financial vs. Stifel Financial Corp | Stifel Financial vs. Morgan Stanley | Stifel Financial vs. The Charles Schwab |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |