Correlation Between Perella Weinberg and Stifel Financial
Can any of the company-specific risk be diversified away by investing in both Perella Weinberg 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 Perella Weinberg and Stifel Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perella Weinberg Partners and Stifel Financial Corp, you can compare the effects of market volatilities on Perella Weinberg 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 Perella Weinberg with a short position of Stifel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perella Weinberg and Stifel Financial.
Diversification Opportunities for Perella Weinberg and Stifel Financial
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Perella and Stifel is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Perella Weinberg Partners 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 Perella Weinberg 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 Perella Weinberg Partners 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 Perella Weinberg i.e., Perella Weinberg and Stifel Financial go up and down completely randomly.
Pair Corralation between Perella Weinberg and Stifel Financial
Considering the 90-day investment horizon Perella Weinberg Partners is expected to generate 1.95 times more return on investment than Stifel Financial. However, Perella Weinberg is 1.95 times more volatile than Stifel Financial Corp. It trades about 0.1 of its potential returns per unit of risk. Stifel Financial Corp is currently generating about 0.03 per unit of risk. If you would invest 919.00 in Perella Weinberg Partners on August 26, 2024 and sell it today you would earn a total of 1,645 from holding Perella Weinberg Partners or generate 179.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perella Weinberg Partners vs. Stifel Financial Corp
Performance |
| Timeline |
| Perella Weinberg Partners |
| Stifel Financial Corp |
Perella Weinberg and Stifel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perella Weinberg and Stifel Financial
The main advantage of trading using opposite Perella Weinberg and Stifel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perella Weinberg 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.| Perella Weinberg vs. Evercore Partners | Perella Weinberg vs. Lazard | Perella Weinberg vs. Piper Sandler Companies | Perella Weinberg vs. Moelis Co |
| Stifel Financial vs. Raymond James Financial | Stifel Financial vs. The Charles Schwab | Stifel Financial vs. The Charles Schwab | Stifel Financial vs. Jefferies Financial Group |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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