Correlation Between Stifel Financial and B Riley
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and B Riley 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 B Riley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and B Riley Financial, you can compare the effects of market volatilities on Stifel Financial and B Riley 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 B Riley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and B Riley.
Diversification Opportunities for Stifel Financial and B Riley
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stifel and RILYK is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and B Riley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Riley Financial 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 B Riley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Riley Financial has no effect on the direction of Stifel Financial i.e., Stifel Financial and B Riley go up and down completely randomly.
Pair Corralation between Stifel Financial and B Riley
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 0.72 times more return on investment than B Riley. However, Stifel Financial is 1.39 times less risky than B Riley. It trades about 0.22 of its potential returns per unit of risk. B Riley Financial is currently generating about 0.14 per unit of risk. If you would invest 9,390 in Stifel Financial on August 29, 2024 and sell it today you would earn a total of 2,278 from holding Stifel Financial or generate 24.26% 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. B Riley Financial
Performance |
| Timeline |
| Stifel Financial |
| B Riley Financial |
Stifel Financial and B Riley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and B Riley
The main advantage of trading using opposite Stifel Financial and B Riley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, B Riley 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 B Riley will offset losses from the drop in B Riley'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 |
| B Riley vs. B Riley Financial | B Riley vs. B Riley Financial, | B Riley vs. B Riley Financial | B Riley vs. B Riley Financial |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |