Correlation Between Stifel Financial and Cactus Acquisition
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Cactus 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 Cactus 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 Cactus Acquisition Corp, you can compare the effects of market volatilities on Stifel Financial and Cactus 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 Cactus Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Cactus Acquisition.
Diversification Opportunities for Stifel Financial and Cactus Acquisition
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stifel and Cactus is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Cactus Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cactus 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 Cactus Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cactus Acquisition Corp has no effect on the direction of Stifel Financial i.e., Stifel Financial and Cactus Acquisition go up and down completely randomly.
Pair Corralation between Stifel Financial and Cactus Acquisition
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 0.92 times more return on investment than Cactus Acquisition. However, Stifel Financial is 1.09 times less risky than Cactus Acquisition. It trades about 0.13 of its potential returns per unit of risk. Cactus Acquisition Corp is currently generating about 0.02 per unit of risk. If you would invest 6,113 in Stifel Financial on August 26, 2024 and sell it today you would earn a total of 5,509 from holding Stifel Financial or generate 90.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stifel Financial vs. Cactus Acquisition Corp
Performance |
| Timeline |
| Stifel Financial |
| Cactus Acquisition Corp |
Stifel Financial and Cactus Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Cactus Acquisition
The main advantage of trading using opposite Stifel Financial and Cactus Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Cactus 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 Cactus Acquisition will offset losses from the drop in Cactus 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 |
| Cactus Acquisition vs. PowerUp Acquisition Corp | Cactus Acquisition vs. Aurora Innovation | Cactus Acquisition vs. HUMANA INC | Cactus Acquisition 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |