Correlation Between Stifel Financial and Inflection Point
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Inflection 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 Inflection 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 Inflection Point Acquisition, you can compare the effects of market volatilities on Stifel Financial and Inflection 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Inflection Point.
Diversification Opportunities for Stifel Financial and Inflection Point
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stifel and Inflection is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of Stifel Financial i.e., Stifel Financial and Inflection Point go up and down completely randomly.
Pair Corralation between Stifel Financial and Inflection Point
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 18.91 times less return on investment than Inflection Point. But when comparing it to its historical volatility, Stifel Financial is 29.83 times less risky than Inflection Point. It trades about 0.08 of its potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Inflection Point Acquisition on August 23, 2024 and sell it today you would earn a total of 1,086 from holding Inflection Point Acquisition or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 76.21% |
| Values | Daily Returns |
Stifel Financial vs. Inflection Point Acquisition
Performance |
| Timeline |
| Stifel Financial |
| Inflection Point Acq |
Stifel Financial and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Inflection Point
The main advantage of trading using opposite Stifel Financial and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Inflection 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 Inflection Point will offset losses from the drop in Inflection Point's long position.| Stifel Financial vs. Evercore Partners | Stifel Financial vs. SCOR PK | Stifel Financial vs. Aquagold International | Stifel Financial vs. Small Cap Core |
| Inflection Point vs. Pearson PLC ADR | Inflection Point vs. Aris Water Solutions | Inflection Point vs. Alliant Energy Corp | Inflection Point vs. GE Vernova LLC |
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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