Correlation Between Stifel Financial and Nova Vision
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Nova Vision 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 Nova Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Nova Vision Acquisition, you can compare the effects of market volatilities on Stifel Financial and Nova Vision 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 Nova Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Nova Vision.
Diversification Opportunities for Stifel Financial and Nova Vision
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stifel and Nova is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Nova Vision Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Vision Acquisition 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 Nova Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Vision Acquisition has no effect on the direction of Stifel Financial i.e., Stifel Financial and Nova Vision go up and down completely randomly.
Pair Corralation between Stifel Financial and Nova Vision
If you would invest 10,051 in Stifel Financial on August 23, 2024 and sell it today you would earn a total of 1,450 from holding Stifel Financial or generate 14.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stifel Financial vs. Nova Vision Acquisition
Performance |
| Timeline |
| Stifel Financial |
| Nova Vision Acquisition |
Stifel Financial and Nova Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Nova Vision
The main advantage of trading using opposite Stifel Financial and Nova Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Nova Vision 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 Nova Vision will offset losses from the drop in Nova Vision's long position.| Stifel Financial vs. Evercore Partners | Stifel Financial vs. SCOR PK | Stifel Financial vs. Aquagold International | Stifel Financial vs. Small Cap Core |
| Nova Vision vs. BBB Foods | Nova Vision vs. Viemed Healthcare | Nova Vision vs. Chemours Co | Nova Vision vs. Hawkins |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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