Correlation Between Stifel Financial and BitFuFu Warrant
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and BitFuFu Warrant 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 BitFuFu Warrant 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 BitFuFu Warrant, you can compare the effects of market volatilities on Stifel Financial and BitFuFu Warrant 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 BitFuFu Warrant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and BitFuFu Warrant.
Diversification Opportunities for Stifel Financial and BitFuFu Warrant
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stifel and BitFuFu is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial Corp and BitFuFu Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitFuFu Warrant 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 BitFuFu Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitFuFu Warrant has no effect on the direction of Stifel Financial i.e., Stifel Financial and BitFuFu Warrant go up and down completely randomly.
Pair Corralation between Stifel Financial and BitFuFu Warrant
Assuming the 90 days horizon Stifel Financial is expected to generate 37.02 times less return on investment than BitFuFu Warrant. But when comparing it to its historical volatility, Stifel Financial Corp is 12.72 times less risky than BitFuFu Warrant. It trades about 0.02 of its potential returns per unit of risk. BitFuFu Warrant is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 35.00 in BitFuFu Warrant on August 27, 2024 and sell it today you would earn a total of 7.00 from holding BitFuFu Warrant or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 38.68% |
| Values | Daily Returns |
Stifel Financial Corp vs. BitFuFu Warrant
Performance |
| Timeline |
| Stifel Financial Corp |
| BitFuFu Warrant |
Stifel Financial and BitFuFu Warrant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and BitFuFu Warrant
The main advantage of trading using opposite Stifel Financial and BitFuFu Warrant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, BitFuFu Warrant 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 BitFuFu Warrant will offset losses from the drop in BitFuFu Warrant's long position.| Stifel Financial vs. Raymond James Financial | Stifel Financial vs. The Charles Schwab | Stifel Financial vs. Jefferies Financial Group | Stifel Financial vs. Oppenheimer Holdings |
| BitFuFu Warrant vs. Raymond James Financial | BitFuFu Warrant vs. The Charles Schwab | BitFuFu Warrant vs. The Charles Schwab | BitFuFu Warrant vs. Top KingWin |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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