Correlation Between Raytheon Technologies and SVB Financial
Can any of the company-specific risk be diversified away by investing in both Raytheon Technologies and SVB 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 Raytheon Technologies and SVB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raytheon Technologies and SVB Financial Group, you can compare the effects of market volatilities on Raytheon Technologies and SVB 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 Raytheon Technologies with a short position of SVB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raytheon Technologies and SVB Financial.
Diversification Opportunities for Raytheon Technologies and SVB Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Raytheon and SVB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Raytheon Technologies and SVB Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVB Financial Group and Raytheon Technologies 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 Raytheon Technologies are associated (or correlated) with SVB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVB Financial Group has no effect on the direction of Raytheon Technologies i.e., Raytheon Technologies and SVB Financial go up and down completely randomly.
Pair Corralation between Raytheon Technologies and SVB Financial
If you would invest 7,682 in Raytheon Technologies on August 27, 2024 and sell it today you would earn a total of 4,042 from holding Raytheon Technologies or generate 52.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.88% |
| Values | Daily Returns |
Raytheon Technologies vs. SVB Financial Group
Performance |
| Timeline |
| Raytheon Technologies |
| SVB Financial Group |
Raytheon Technologies and SVB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raytheon Technologies and SVB Financial
The main advantage of trading using opposite Raytheon Technologies and SVB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raytheon Technologies position performs unexpectedly, SVB 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 SVB Financial will offset losses from the drop in SVB Financial's long position.| Raytheon Technologies vs. Fras le SA | Raytheon Technologies vs. Western Digital | Raytheon Technologies vs. Clave Indices De | Raytheon Technologies vs. BTG Pactual Logstica |
| SVB Financial vs. Fras le SA | SVB Financial vs. Clave Indices De | SVB Financial vs. BTG Pactual Logstica | SVB Financial vs. Telefonaktiebolaget LM Ericsson |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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