Correlation Between Stifel Financial and Top KingWin
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Top KingWin 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 Top KingWin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Top KingWin, you can compare the effects of market volatilities on Stifel Financial and Top KingWin 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 Top KingWin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Top KingWin.
Diversification Opportunities for Stifel Financial and Top KingWin
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stifel and Top is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Top KingWin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Top KingWin 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 Top KingWin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Top KingWin has no effect on the direction of Stifel Financial i.e., Stifel Financial and Top KingWin go up and down completely randomly.
Pair Corralation between Stifel Financial and Top KingWin
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 0.58 times more return on investment than Top KingWin. However, Stifel Financial is 1.72 times less risky than Top KingWin. It trades about 0.18 of its potential returns per unit of risk. Top KingWin is currently generating about -0.33 per unit of risk. If you would invest 10,514 in Stifel Financial on August 28, 2024 and sell it today you would earn a total of 1,258 from holding Stifel Financial or generate 11.96% 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. Top KingWin
Performance |
| Timeline |
| Stifel Financial |
| Top KingWin |
Stifel Financial and Top KingWin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Top KingWin
The main advantage of trading using opposite Stifel Financial and Top KingWin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Top KingWin 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 Top KingWin will offset losses from the drop in Top KingWin'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 |
| Top KingWin vs. Goldman Sachs Group | Top KingWin vs. Moelis Co | Top KingWin vs. Morgan Stanley | Top KingWin vs. Stifel 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |