Correlation Between Raymond James and Xp
Can any of the company-specific risk be diversified away by investing in both Raymond James and Xp 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 Xp 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 Xp Inc, you can compare the effects of market volatilities on Raymond James and Xp 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 Xp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raymond James and Xp.
Diversification Opportunities for Raymond James and Xp
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Raymond and Xp is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial and Xp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xp Inc 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 Xp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xp Inc has no effect on the direction of Raymond James i.e., Raymond James and Xp go up and down completely randomly.
Pair Corralation between Raymond James and Xp
Considering the 90-day investment horizon Raymond James Financial is expected to under-perform the Xp. But the stock apears to be less risky and, when comparing its historical volatility, Raymond James Financial is 1.44 times less risky than Xp. The stock trades about -0.43 of its potential returns per unit of risk. The Xp Inc is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,314 in Xp Inc on November 27, 2024 and sell it today you would earn a total of 151.00 from holding Xp Inc or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raymond James Financial vs. Xp Inc
Performance |
| Timeline |
| Raymond James Financial |
| Xp Inc |
Raymond James and Xp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raymond James and Xp
The main advantage of trading using opposite Raymond James and Xp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James position performs unexpectedly, Xp 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 Xp will offset losses from the drop in Xp's long position.| Raymond James vs. Tradeweb Markets | Raymond James vs. PJT Partners | Raymond James vs. Moelis Co | Raymond James vs. LPL Financial Holdings |
| Xp vs. Up Fintech Holding | Xp vs. Bit Digital | Xp vs. Marathon Digital Holdings | Xp vs. MarketAxess 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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