Correlation Between Stifel Financial and Up Fintech
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Up Fintech 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 Up Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Up Fintech Holding, you can compare the effects of market volatilities on Stifel Financial and Up Fintech 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 Up Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Up Fintech.
Diversification Opportunities for Stifel Financial and Up Fintech
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stifel and TIGR is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Up Fintech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Up Fintech Holding 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 Up Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Up Fintech Holding has no effect on the direction of Stifel Financial i.e., Stifel Financial and Up Fintech go up and down completely randomly.
Pair Corralation between Stifel Financial and Up Fintech
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 0.34 times more return on investment than Up Fintech. However, Stifel Financial is 2.93 times less risky than Up Fintech. It trades about 0.09 of its potential returns per unit of risk. Up Fintech Holding is currently generating about 0.03 per unit of risk. If you would invest 5,880 in Stifel Financial on August 27, 2024 and sell it today you would earn a total of 5,742 from holding Stifel Financial or generate 97.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stifel Financial vs. Up Fintech Holding
Performance |
| Timeline |
| Stifel Financial |
| Up Fintech Holding |
Stifel Financial and Up Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Up Fintech
The main advantage of trading using opposite Stifel Financial and Up Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Up Fintech 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 Up Fintech will offset losses from the drop in Up Fintech'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 |
| Up Fintech vs. Bit Digital | Up Fintech vs. Marathon Digital Holdings | Up Fintech vs. Xp Inc | Up Fintech vs. Bitfarms |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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