Correlation Between Stifel Financial and LatAmGrowth SPAC
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and LatAmGrowth SPAC 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 LatAmGrowth SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and LatAmGrowth SPAC, you can compare the effects of market volatilities on Stifel Financial and LatAmGrowth SPAC 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 LatAmGrowth SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and LatAmGrowth SPAC.
Diversification Opportunities for Stifel Financial and LatAmGrowth SPAC
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Stifel and LatAmGrowth is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and LatAmGrowth SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LatAmGrowth SPAC 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 LatAmGrowth SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LatAmGrowth SPAC has no effect on the direction of Stifel Financial i.e., Stifel Financial and LatAmGrowth SPAC go up and down completely randomly.
Pair Corralation between Stifel Financial and LatAmGrowth SPAC
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 21.37 times more return on investment than LatAmGrowth SPAC. However, Stifel Financial is 21.37 times more volatile than LatAmGrowth SPAC. It trades about 0.16 of its potential returns per unit of risk. LatAmGrowth SPAC is currently generating about 0.2 per unit of risk. If you would invest 8,013 in Stifel Financial on August 29, 2024 and sell it today you would earn a total of 3,615 from holding Stifel Financial or generate 45.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stifel Financial vs. LatAmGrowth SPAC
Performance |
| Timeline |
| Stifel Financial |
| LatAmGrowth SPAC |
Stifel Financial and LatAmGrowth SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and LatAmGrowth SPAC
The main advantage of trading using opposite Stifel Financial and LatAmGrowth SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, LatAmGrowth SPAC 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 LatAmGrowth SPAC will offset losses from the drop in LatAmGrowth SPAC'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 |
| LatAmGrowth SPAC vs. Portage Fintech Acquisition | LatAmGrowth SPAC vs. Swiftmerge Acquisition Corp | LatAmGrowth SPAC vs. Four Leaf Acquisition | LatAmGrowth SPAC vs. IX Acquisition 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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