Correlation Between Stifel Financial and Pyrophyte Acquisition
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Pyrophyte Acquisition 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 Pyrophyte Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Pyrophyte Acquisition Corp, you can compare the effects of market volatilities on Stifel Financial and Pyrophyte Acquisition 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 Pyrophyte Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Pyrophyte Acquisition.
Diversification Opportunities for Stifel Financial and Pyrophyte Acquisition
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stifel and Pyrophyte is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Pyrophyte Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyrophyte 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 Pyrophyte Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyrophyte Acquisition has no effect on the direction of Stifel Financial i.e., Stifel Financial and Pyrophyte Acquisition go up and down completely randomly.
Pair Corralation between Stifel Financial and Pyrophyte Acquisition
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 19.45 times more return on investment than Pyrophyte Acquisition. However, Stifel Financial is 19.45 times more volatile than Pyrophyte Acquisition Corp. It trades about 0.18 of its potential returns per unit of risk. Pyrophyte Acquisition Corp is currently generating about -0.12 per unit of risk. If you would invest 10,362 in Stifel Financial on September 1, 2024 and sell it today you would earn a total of 1,218 from holding Stifel Financial or generate 11.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stifel Financial vs. Pyrophyte Acquisition Corp
Performance |
| Timeline |
| Stifel Financial |
| Pyrophyte Acquisition |
Stifel Financial and Pyrophyte Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Pyrophyte Acquisition
The main advantage of trading using opposite Stifel Financial and Pyrophyte Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Pyrophyte Acquisition 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 Pyrophyte Acquisition will offset losses from the drop in Pyrophyte Acquisition's long position.| Stifel Financial vs. Lazard | Stifel Financial vs. PJT Partners | Stifel Financial vs. Houlihan Lokey | Stifel Financial vs. Piper Sandler Companies |
| Pyrophyte Acquisition vs. Cartesian Growth | Pyrophyte Acquisition vs. Oak Woods Acquisition | Pyrophyte Acquisition vs. Global Blockchain Acquisition | Pyrophyte Acquisition vs. Manaris 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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