Correlation Between Stifel Financial and BurTech Acquisition
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and BurTech Acquisition 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 BurTech Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and BurTech Acquisition Corp, you can compare the effects of market volatilities on Stifel Financial and BurTech Acquisition 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 BurTech Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and BurTech Acquisition.
Diversification Opportunities for Stifel Financial and BurTech Acquisition
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Stifel and BurTech is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and BurTech Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BurTech Acquisition Corp 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 BurTech Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BurTech Acquisition Corp has no effect on the direction of Stifel Financial i.e., Stifel Financial and BurTech Acquisition go up and down completely randomly.
Pair Corralation between Stifel Financial and BurTech Acquisition
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 16.5 times more return on investment than BurTech Acquisition. However, Stifel Financial is 16.5 times more volatile than BurTech Acquisition Corp. It trades about 0.15 of its potential returns per unit of risk. BurTech Acquisition Corp is currently generating about 0.2 per unit of risk. If you would invest 10,514 in Stifel Financial on August 29, 2024 and sell it today you would earn a total of 1,114 from holding Stifel Financial or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stifel Financial vs. BurTech Acquisition Corp
Performance |
| Timeline |
| Stifel Financial |
| BurTech Acquisition Corp |
Stifel Financial and BurTech Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and BurTech Acquisition
The main advantage of trading using opposite Stifel Financial and BurTech Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, BurTech Acquisition 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 BurTech Acquisition will offset losses from the drop in BurTech Acquisition'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 |
| BurTech Acquisition vs. Swiftmerge Acquisition Corp | BurTech Acquisition vs. CF Acquisition VII | BurTech Acquisition vs. Portage Fintech Acquisition | BurTech Acquisition vs. ClimateRock Class A |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |