Correlation Between Stifel Financial and PJT Partners
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and PJT Partners 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 PJT Partners 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 PJT Partners, you can compare the effects of market volatilities on Stifel Financial and PJT Partners 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 PJT Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and PJT Partners.
Diversification Opportunities for Stifel Financial and PJT Partners
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stifel and PJT is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial Corp and PJT Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJT Partners 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 PJT Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJT Partners has no effect on the direction of Stifel Financial i.e., Stifel Financial and PJT Partners go up and down completely randomly.
Pair Corralation between Stifel Financial and PJT Partners
Assuming the 90 days horizon Stifel Financial is expected to generate 11.75 times less return on investment than PJT Partners. But when comparing it to its historical volatility, Stifel Financial Corp is 4.1 times less risky than PJT Partners. It trades about 0.06 of its potential returns per unit of risk. PJT Partners is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 10,620 in PJT Partners on August 29, 2024 and sell it today you would earn a total of 5,899 from holding PJT Partners or generate 55.55% 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. PJT Partners
Performance |
| Timeline |
| Stifel Financial Corp |
| PJT Partners |
Stifel Financial and PJT Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and PJT Partners
The main advantage of trading using opposite Stifel Financial and PJT Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, PJT Partners 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 PJT Partners will offset losses from the drop in PJT Partners' long position.| Stifel Financial vs. Perella Weinberg Partners | Stifel Financial vs. Oppenheimer Holdings | Stifel Financial vs. Stifel Financial Corp | Stifel Financial vs. Piper Sandler Companies |
| PJT Partners vs. Scully Royalty | PJT Partners vs. Piper Sandler Companies | PJT Partners vs. Evercore Partners | PJT Partners 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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