Correlation Between Raymond James and Marex Group
Can any of the company-specific risk be diversified away by investing in both Raymond James and Marex Group 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 Raymond James and Marex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raymond James Financial and Marex Group plc, you can compare the effects of market volatilities on Raymond James and Marex Group 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 Raymond James with a short position of Marex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raymond James and Marex Group.
Diversification Opportunities for Raymond James and Marex Group
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Raymond and Marex is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial and Marex Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marex Group plc and Raymond James 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 Raymond James Financial are associated (or correlated) with Marex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marex Group plc has no effect on the direction of Raymond James i.e., Raymond James and Marex Group go up and down completely randomly.
Pair Corralation between Raymond James and Marex Group
Assuming the 90 days trading horizon Raymond James is expected to generate 31.95 times less return on investment than Marex Group. But when comparing it to its historical volatility, Raymond James Financial is 17.74 times less risky than Marex Group. It trades about 0.2 of its potential returns per unit of risk. Marex Group plc is currently generating about 0.37 of returns per unit of risk over similar time horizon. 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 |
Raymond James Financial vs. Marex Group plc
Performance |
| Timeline |
| Raymond James Financial |
| Marex Group plc |
Raymond James and Marex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raymond James and Marex Group
The main advantage of trading using opposite Raymond James and Marex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James position performs unexpectedly, Marex Group 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 Marex Group will offset losses from the drop in Marex Group's long position.| Raymond James vs. Washington Federal | Raymond James vs. Truist Financial | Raymond James vs. The Charles Schwab | Raymond James vs. Associated Banc Corp |
| Marex Group vs. Ihuman Inc | Marex Group vs. Playtika Holding Corp | Marex Group vs. Lindblad Expeditions Holdings | Marex Group vs. Nexstar Broadcasting 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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