Correlation Between Stifel Financial and Piper Sandler
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Piper Sandler 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 Stifel Financial and Piper Sandler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial Corp and Piper Sandler Companies, you can compare the effects of market volatilities on Stifel Financial and Piper Sandler 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 Stifel Financial with a short position of Piper Sandler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Piper Sandler.
Diversification Opportunities for Stifel Financial and Piper Sandler
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Stifel and Piper is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial Corp and Piper Sandler Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piper Sandler Companies and Stifel Financial 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 Stifel Financial Corp are associated (or correlated) with Piper Sandler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piper Sandler Companies has no effect on the direction of Stifel Financial i.e., Stifel Financial and Piper Sandler go up and down completely randomly.
Pair Corralation between Stifel Financial and Piper Sandler
Assuming the 90 days horizon Stifel Financial is expected to generate 6.94 times less return on investment than Piper Sandler. But when comparing it to its historical volatility, Stifel Financial Corp is 1.83 times less risky than Piper Sandler. It trades about 0.03 of its potential returns per unit of risk. Piper Sandler Companies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 13,396 in Piper Sandler Companies on August 26, 2024 and sell it today you would earn a total of 20,675 from holding Piper Sandler Companies or generate 154.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stifel Financial Corp vs. Piper Sandler Companies
Performance |
| Timeline |
| Stifel Financial Corp |
| Piper Sandler Companies |
Stifel Financial and Piper Sandler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Piper Sandler
The main advantage of trading using opposite Stifel Financial and Piper Sandler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Piper Sandler 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 Piper Sandler will offset losses from the drop in Piper Sandler's long position.| Stifel Financial vs. Morgan Stanley | Stifel Financial vs. Morgan Stanley | Stifel Financial vs. Morgan Stanley | Stifel Financial vs. Morgan Stanley |
| Piper Sandler vs. Perella Weinberg Partners | Piper Sandler vs. Evercore Partners | Piper Sandler vs. Lazard | Piper Sandler vs. Moelis 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |