Correlation Between Stifel Financial and FirstCash
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and FirstCash 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 FirstCash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and FirstCash, you can compare the effects of market volatilities on Stifel Financial and FirstCash 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 FirstCash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and FirstCash.
Diversification Opportunities for Stifel Financial and FirstCash
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stifel and FirstCash is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and FirstCash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstCash 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 FirstCash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstCash has no effect on the direction of Stifel Financial i.e., Stifel Financial and FirstCash go up and down completely randomly.
Pair Corralation between Stifel Financial and FirstCash
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 1.07 times more return on investment than FirstCash. However, Stifel Financial is 1.07 times more volatile than FirstCash. It trades about 0.09 of its potential returns per unit of risk. FirstCash is currently generating about 0.03 per unit of risk. If you would invest 5,753 in Stifel Financial on August 30, 2024 and sell it today you would earn a total of 5,875 from holding Stifel Financial or generate 102.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stifel Financial vs. FirstCash
Performance |
| Timeline |
| Stifel Financial |
| FirstCash |
Stifel Financial and FirstCash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and FirstCash
The main advantage of trading using opposite Stifel Financial and FirstCash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, FirstCash 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 FirstCash will offset losses from the drop in FirstCash'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 |
| FirstCash vs. World Acceptance | FirstCash vs. Enova International | FirstCash vs. Green Dot | FirstCash vs. Medallion Financial Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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