Correlation Between Stifel Financial and Eagle Point
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Eagle Point 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 Eagle Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Eagle Point Credit, you can compare the effects of market volatilities on Stifel Financial and Eagle Point 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 Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Eagle Point.
Diversification Opportunities for Stifel Financial and Eagle Point
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stifel and Eagle is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Eagle Point Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Credit 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 Eagle Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Credit has no effect on the direction of Stifel Financial i.e., Stifel Financial and Eagle Point go up and down completely randomly.
Pair Corralation between Stifel Financial and Eagle Point
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 1.91 times more return on investment than Eagle Point. However, Stifel Financial is 1.91 times more volatile than Eagle Point Credit. It trades about 0.13 of its potential returns per unit of risk. Eagle Point Credit is currently generating about 0.04 per unit of risk. If you would invest 5,702 in Stifel Financial on August 31, 2024 and sell it today you would earn a total of 5,878 from holding Stifel Financial or generate 103.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Stifel Financial vs. Eagle Point Credit
Performance |
| Timeline |
| Stifel Financial |
| Eagle Point Credit |
Stifel Financial and Eagle Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Eagle Point
The main advantage of trading using opposite Stifel Financial and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Eagle Point 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 Eagle Point will offset losses from the drop in Eagle Point'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 |
| Eagle Point vs. Cornerstone Strategic Return | Eagle Point vs. Cornerstone Strategic Value | Eagle Point vs. Oxford Square Capital | Eagle Point vs. Guggenheim Strategic Opportunities |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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