Correlation Between Iris Energy and Stifel Financial
Can any of the company-specific risk be diversified away by investing in both Iris Energy 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 Iris Energy and Stifel Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iris Energy and Stifel Financial Corp, you can compare the effects of market volatilities on Iris Energy 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 Iris Energy with a short position of Stifel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iris Energy and Stifel Financial.
Diversification Opportunities for Iris Energy and Stifel Financial
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Iris and Stifel is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Iris Energy 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 Iris Energy 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 Iris Energy 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 Iris Energy i.e., Iris Energy and Stifel Financial go up and down completely randomly.
Pair Corralation between Iris Energy and Stifel Financial
Given the investment horizon of 90 days Iris Energy is expected to generate 10.21 times more return on investment than Stifel Financial. However, Iris Energy is 10.21 times more volatile than Stifel Financial Corp. It trades about 0.13 of its potential returns per unit of risk. Stifel Financial Corp is currently generating about 0.01 per unit of risk. If you would invest 791.00 in Iris Energy on August 30, 2024 and sell it today you would earn a total of 449.00 from holding Iris Energy or generate 56.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iris Energy vs. Stifel Financial Corp
Performance |
| Timeline |
| Iris Energy |
| Stifel Financial Corp |
Iris Energy and Stifel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iris Energy and Stifel Financial
The main advantage of trading using opposite Iris Energy and Stifel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iris Energy 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.| Iris Energy vs. SEI Investments | Iris Energy vs. Citizens Bancorp Investment | Iris Energy vs. Valneva SE ADR | Iris Energy vs. Lipocine |
| Stifel Financial vs. Q2 Holdings | Stifel Financial vs. United Airlines Holdings | Stifel Financial vs. Verra Mobility Corp | Stifel Financial vs. Proficient Auto Logistics, |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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