Correlation Between Marex Group and Raymond James
Can any of the company-specific risk be diversified away by investing in both Marex Group and Raymond James 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 Marex Group and Raymond James into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marex Group plc and Raymond James Financial, you can compare the effects of market volatilities on Marex Group and Raymond James 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 Marex Group with a short position of Raymond James. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marex Group and Raymond James.
Diversification Opportunities for Marex Group and Raymond James
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Marex and Raymond is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Marex Group plc and Raymond James Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raymond James Financial and Marex Group 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 Marex Group plc are associated (or correlated) with Raymond James. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raymond James Financial has no effect on the direction of Marex Group i.e., Marex Group and Raymond James go up and down completely randomly.
Pair Corralation between Marex Group and Raymond James
Considering the 90-day investment horizon Marex Group plc is expected to generate 17.74 times more return on investment than Raymond James. However, Marex Group is 17.74 times more volatile than Raymond James Financial. It trades about 0.37 of its potential returns per unit of risk. Raymond James Financial is currently generating about 0.2 per unit of risk. If you would invest 2,558 in Marex Group plc on August 28, 2024 and sell it today you would earn a total of 337.00 from holding Marex Group plc or generate 13.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marex Group plc vs. Raymond James Financial
Performance |
| Timeline |
| Marex Group plc |
| Raymond James Financial |
Marex Group and Raymond James Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marex Group and Raymond James
The main advantage of trading using opposite Marex Group and Raymond James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marex Group position performs unexpectedly, Raymond James 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 Raymond James will offset losses from the drop in Raymond James' long position.| Marex Group vs. Ihuman Inc | Marex Group vs. Playtika Holding Corp | Marex Group vs. Lindblad Expeditions Holdings | Marex Group vs. Nexstar Broadcasting Group |
| Raymond James vs. Washington Federal | Raymond James vs. Truist Financial | Raymond James vs. The Charles Schwab | Raymond James vs. Associated Banc Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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