Correlation Between Stifel Financial and Bit Digital
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Bit Digital 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 Bit Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Bit Digital, you can compare the effects of market volatilities on Stifel Financial and Bit Digital 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 Bit Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Bit Digital.
Diversification Opportunities for Stifel Financial and Bit Digital
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Stifel and Bit is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Bit Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Digital 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 Bit Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bit Digital has no effect on the direction of Stifel Financial i.e., Stifel Financial and Bit Digital go up and down completely randomly.
Pair Corralation between Stifel Financial and Bit Digital
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 0.31 times more return on investment than Bit Digital. However, Stifel Financial is 3.18 times less risky than Bit Digital. It trades about 0.16 of its potential returns per unit of risk. Bit Digital is currently generating about 0.04 per unit of risk. If you would invest 10,476 in Stifel Financial on August 30, 2024 and sell it today you would earn a total of 1,152 from holding Stifel Financial or generate 11.0% 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. Bit Digital
Performance |
| Timeline |
| Stifel Financial |
| Bit Digital |
Stifel Financial and Bit Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Bit Digital
The main advantage of trading using opposite Stifel Financial and Bit Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Bit Digital 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 Bit Digital will offset losses from the drop in Bit Digital's long position.| Stifel Financial vs. Raymond James Financial | Stifel Financial vs. Selective Insurance Group | Stifel Financial vs. Reinsurance Group of | Stifel Financial vs. Houlihan Lokey |
| Bit Digital vs. Hut 8 Corp | Bit Digital vs. HIVE Blockchain Technologies | Bit Digital vs. CleanSpark | Bit Digital vs. Terawulf |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |