Correlation Between Raymond James and Stifel Financial
Can any of the company-specific risk be diversified away by investing in both Raymond James 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 Raymond James and Stifel Financial 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 Stifel Financial, you can compare the effects of market volatilities on Raymond James 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 Raymond James with a short position of Stifel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raymond James and Stifel Financial.
Diversification Opportunities for Raymond James and Stifel Financial
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Raymond and Stifel is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial and Stifel Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stifel Financial 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 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 has no effect on the direction of Raymond James i.e., Raymond James and Stifel Financial go up and down completely randomly.
Pair Corralation between Raymond James and Stifel Financial
Considering the 90-day investment horizon Raymond James Financial is expected to generate 0.89 times more return on investment than Stifel Financial. However, Raymond James Financial is 1.13 times less risky than Stifel Financial. It trades about 0.29 of its potential returns per unit of risk. Stifel Financial is currently generating about 0.19 per unit of risk. If you would invest 13,736 in Raymond James Financial on August 24, 2024 and sell it today you would earn a total of 2,642 from holding Raymond James Financial or generate 19.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raymond James Financial vs. Stifel Financial
Performance |
| Timeline |
| Raymond James Financial |
| Stifel Financial |
Raymond James and Stifel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raymond James and Stifel Financial
The main advantage of trading using opposite Raymond James and Stifel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James 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.| Raymond James vs. Tradeweb Markets | Raymond James vs. PJT Partners | Raymond James vs. Moelis Co | Raymond James vs. LPL Financial Holdings |
| Stifel Financial vs. Raymond James Financial | Stifel Financial vs. Evercore Partners | Stifel Financial vs. Selective Insurance Group | Stifel Financial vs. Reinsurance Group of |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges |