Correlation Between Raymond James and MarketAxess Holdings
Can any of the company-specific risk be diversified away by investing in both Raymond James and MarketAxess Holdings 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 MarketAxess Holdings 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 MarketAxess Holdings, you can compare the effects of market volatilities on Raymond James and MarketAxess Holdings 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 MarketAxess Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raymond James and MarketAxess Holdings.
Diversification Opportunities for Raymond James and MarketAxess Holdings
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Raymond and MarketAxess is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial and MarketAxess Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MarketAxess Holdings 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 MarketAxess Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MarketAxess Holdings has no effect on the direction of Raymond James i.e., Raymond James and MarketAxess Holdings go up and down completely randomly.
Pair Corralation between Raymond James and MarketAxess Holdings
Considering the 90-day investment horizon Raymond James Financial is expected to generate 2.07 times more return on investment than MarketAxess Holdings. However, Raymond James is 2.07 times more volatile than MarketAxess Holdings. It trades about 0.24 of its potential returns per unit of risk. MarketAxess Holdings is currently generating about -0.35 per unit of risk. If you would invest 14,816 in Raymond James Financial on August 28, 2024 and sell it today you would earn a total of 1,889 from holding Raymond James Financial or generate 12.75% 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. MarketAxess Holdings
Performance |
| Timeline |
| Raymond James Financial |
| MarketAxess Holdings |
Raymond James and MarketAxess Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raymond James and MarketAxess Holdings
The main advantage of trading using opposite Raymond James and MarketAxess Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James position performs unexpectedly, MarketAxess Holdings 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 MarketAxess Holdings will offset losses from the drop in MarketAxess Holdings' long position.| Raymond James vs. Tradeweb Markets | Raymond James vs. PJT Partners | Raymond James vs. Moelis Co | Raymond James vs. LPL Financial Holdings |
| MarketAxess Holdings vs. Interactive Brokers Group | MarketAxess Holdings vs. Evercore Partners | MarketAxess Holdings vs. PJT Partners | MarketAxess Holdings vs. LPL Financial Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |