Correlation Between Marex Group and Stifel Financial
Can any of the company-specific risk be diversified away by investing in both Marex Group 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 Marex Group and Stifel Financial 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 Stifel Financial Corp, you can compare the effects of market volatilities on Marex Group 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 Marex Group with a short position of Stifel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marex Group and Stifel Financial.
Diversification Opportunities for Marex Group and Stifel Financial
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marex and Stifel is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Marex Group plc 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 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 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 Marex Group i.e., Marex Group and Stifel Financial go up and down completely randomly.
Pair Corralation between Marex Group and Stifel Financial
Considering the 90-day investment horizon Marex Group plc is expected to generate 2.15 times more return on investment than Stifel Financial. However, Marex Group is 2.15 times more volatile than Stifel Financial Corp. It trades about 0.18 of its potential returns per unit of risk. Stifel Financial Corp is currently generating about 0.0 per unit of risk. If you would invest 2,439 in Marex Group plc on August 31, 2024 and sell it today you would earn a total of 476.00 from holding Marex Group plc or generate 19.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marex Group plc vs. Stifel Financial Corp
Performance |
| Timeline |
| Marex Group plc |
| Stifel Financial Corp |
Marex Group and Stifel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marex Group and Stifel Financial
The main advantage of trading using opposite Marex Group and Stifel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marex Group 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.| Marex Group vs. LB Foster | Marex Group vs. Pool Corporation | Marex Group vs. Cardinal Health | Marex Group vs. Amkor Technology |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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