Correlation Between Stifel Financial and Security National
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Security National 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 Security National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Security National Financial, you can compare the effects of market volatilities on Stifel Financial and Security National 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 Security National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Security National.
Diversification Opportunities for Stifel Financial and Security National
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Stifel and Security is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Security National Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Security National 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 Security National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Security National has no effect on the direction of Stifel Financial i.e., Stifel Financial and Security National go up and down completely randomly.
Pair Corralation between Stifel Financial and Security National
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 1.94 times less return on investment than Security National. In addition to that, Stifel Financial is 1.06 times more volatile than Security National Financial. It trades about 0.19 of its total potential returns per unit of risk. Security National Financial is currently generating about 0.39 per unit of volatility. If you would invest 975.00 in Security National Financial on August 24, 2024 and sell it today you would earn a total of 287.00 from holding Security National Financial or generate 29.44% 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. Security National Financial
Performance |
| Timeline |
| Stifel Financial |
| Security National |
Stifel Financial and Security National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Security National
The main advantage of trading using opposite Stifel Financial and Security National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Security National 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 Security National will offset losses from the drop in Security National'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 |
| Security National vs. Guild Holdings Co | Security National vs. Encore Capital Group | Security National vs. PennyMac Finl Svcs | Security National vs. CNFinance Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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