Correlation Between MGT Capital and Stifel Financial
Can any of the company-specific risk be diversified away by investing in both MGT Capital 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 MGT Capital and Stifel Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MGT Capital Investments and Stifel Financial Corp, you can compare the effects of market volatilities on MGT Capital 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 MGT Capital with a short position of Stifel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGT Capital and Stifel Financial.
Diversification Opportunities for MGT Capital and Stifel Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MGT and Stifel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MGT Capital Investments 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 MGT Capital 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 MGT Capital Investments 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 MGT Capital i.e., MGT Capital and Stifel Financial go up and down completely randomly.
Pair Corralation between MGT Capital and Stifel Financial
If you would invest 1,921 in Stifel Financial Corp on August 24, 2024 and sell it today you would earn a total of 50.00 from holding Stifel Financial Corp or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
MGT Capital Investments vs. Stifel Financial Corp
Performance |
| Timeline |
| MGT Capital Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stifel Financial Corp |
MGT Capital and Stifel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGT Capital and Stifel Financial
The main advantage of trading using opposite MGT Capital and Stifel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGT Capital 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 MGT Capital Investments 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.| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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