Correlation Between Stifel Financial and Agriculture Natural
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Agriculture Natural 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 Agriculture Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Agriculture Natural Solutions, you can compare the effects of market volatilities on Stifel Financial and Agriculture Natural 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 Agriculture Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Agriculture Natural.
Diversification Opportunities for Stifel Financial and Agriculture Natural
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Stifel and Agriculture is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Agriculture Natural Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agriculture Natural 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 are associated (or correlated) with Agriculture Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agriculture Natural has no effect on the direction of Stifel Financial i.e., Stifel Financial and Agriculture Natural go up and down completely randomly.
Pair Corralation between Stifel Financial and Agriculture Natural
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 1.99 times less return on investment than Agriculture Natural. But when comparing it to its historical volatility, Stifel Financial is 6.58 times less risky than Agriculture Natural. It trades about 0.17 of its potential returns per unit of risk. Agriculture Natural Solutions is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Agriculture Natural Solutions on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Agriculture Natural Solutions or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 52.21% |
| Values | Daily Returns |
Stifel Financial vs. Agriculture Natural Solutions
Performance |
| Timeline |
| Stifel Financial |
| Agriculture Natural |
Stifel Financial and Agriculture Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Agriculture Natural
The main advantage of trading using opposite Stifel Financial and Agriculture Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Agriculture Natural 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 Agriculture Natural will offset losses from the drop in Agriculture Natural's long position.| Stifel Financial vs. Raymond James Financial | Stifel Financial vs. Evercore Partners | Stifel Financial vs. Selective Insurance Group | Stifel Financial vs. Reinsurance Group of |
| Agriculture Natural vs. PowerUp Acquisition Corp | Agriculture Natural vs. Aurora Innovation | Agriculture Natural vs. HUMANA INC | Agriculture Natural vs. Aquagold International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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