Correlation Between Sachem Capital and Stifel Financial
Can any of the company-specific risk be diversified away by investing in both Sachem Capital 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 Sachem Capital and Stifel Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sachem Capital Corp and Stifel Financial, you can compare the effects of market volatilities on Sachem Capital 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 Sachem Capital with a short position of Stifel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sachem Capital and Stifel Financial.
Diversification Opportunities for Sachem Capital and Stifel Financial
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sachem and Stifel is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sachem Capital Corp and Stifel Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stifel Financial and Sachem Capital 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 Sachem Capital Corp 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 Sachem Capital i.e., Sachem Capital and Stifel Financial go up and down completely randomly.
Pair Corralation between Sachem Capital and Stifel Financial
Given the investment horizon of 90 days Sachem Capital Corp is expected to generate 0.22 times more return on investment than Stifel Financial. However, Sachem Capital Corp is 4.61 times less risky than Stifel Financial. It trades about 0.17 of its potential returns per unit of risk. Stifel Financial is currently generating about -0.08 per unit of risk. If you would invest 2,468 in Sachem Capital Corp on August 30, 2024 and sell it today you would earn a total of 38.00 from holding Sachem Capital Corp or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sachem Capital Corp vs. Stifel Financial
Performance |
| Timeline |
| Sachem Capital Corp |
| Stifel Financial |
Sachem Capital and Stifel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sachem Capital and Stifel Financial
The main advantage of trading using opposite Sachem Capital and Stifel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sachem Capital 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.| Sachem Capital vs. Sachem Capital Corp | Sachem Capital vs. Eagle Point Credit | Sachem Capital vs. B Riley Financial |
| Stifel Financial vs. Reinsurance Group of | Stifel Financial vs. Southern Co | Stifel Financial vs. DTE Energy Co | Stifel Financial vs. Georgia Power Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |