Correlation Between Stifel Financial and Groep Brussel
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Groep Brussel 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 Groep Brussel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Groep Brussel Lambert, you can compare the effects of market volatilities on Stifel Financial and Groep Brussel 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 Groep Brussel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Groep Brussel.
Diversification Opportunities for Stifel Financial and Groep Brussel
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stifel and Groep is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Groep Brussel Lambert in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groep Brussel Lambert 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 Groep Brussel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groep Brussel Lambert has no effect on the direction of Stifel Financial i.e., Stifel Financial and Groep Brussel go up and down completely randomly.
Pair Corralation between Stifel Financial and Groep Brussel
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 1.45 times more return on investment than Groep Brussel. However, Stifel Financial is 1.45 times more volatile than Groep Brussel Lambert. It trades about 0.27 of its potential returns per unit of risk. Groep Brussel Lambert is currently generating about 0.15 per unit of risk. If you would invest 10,613 in Stifel Financial on November 3, 2024 and sell it today you would earn a total of 972.00 from holding Stifel Financial or generate 9.16% 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. Groep Brussel Lambert
Performance |
| Timeline |
| Stifel Financial |
| Groep Brussel Lambert |
Stifel Financial and Groep Brussel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Groep Brussel
The main advantage of trading using opposite Stifel Financial and Groep Brussel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Groep Brussel 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 Groep Brussel will offset losses from the drop in Groep Brussel'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 |
| Groep Brussel vs. Guardian Capital Group | Groep Brussel vs. Princeton Capital | Groep Brussel vs. SMC Entertainment | Groep Brussel vs. 1812 Brewing |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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