Correlation Between Raymond James and BGC
Can any of the company-specific risk be diversified away by investing in both Raymond James and BGC 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 BGC 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 BGC Group, you can compare the effects of market volatilities on Raymond James and BGC 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 BGC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raymond James and BGC.
Diversification Opportunities for Raymond James and BGC
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Raymond and BGC is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial and BGC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGC Group 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 BGC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGC Group has no effect on the direction of Raymond James i.e., Raymond James and BGC go up and down completely randomly.
Pair Corralation between Raymond James and BGC
Considering the 90-day investment horizon Raymond James Financial is expected to under-perform the BGC. But the stock apears to be less risky and, when comparing its historical volatility, Raymond James Financial is 1.93 times less risky than BGC. The stock trades about -0.44 of its potential returns per unit of risk. The BGC Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 943.00 in BGC Group on November 28, 2024 and sell it today you would earn a total of 7.00 from holding BGC Group or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raymond James Financial vs. BGC Group
Performance |
| Timeline |
| Raymond James Financial |
| BGC Group |
Raymond James and BGC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raymond James and BGC
The main advantage of trading using opposite Raymond James and BGC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James position performs unexpectedly, BGC 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 BGC will offset losses from the drop in BGC's long position.| Raymond James vs. Tradeweb Markets | Raymond James vs. PJT Partners | Raymond James vs. Moelis Co | Raymond James vs. LPL Financial Holdings |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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