Correlation Between Stifel Financial and Unum
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Unum 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 Unum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Unum Group, you can compare the effects of market volatilities on Stifel Financial and Unum 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 Unum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Unum.
Diversification Opportunities for Stifel Financial and Unum
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stifel and Unum is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Unum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unum Group 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 Unum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unum Group has no effect on the direction of Stifel Financial i.e., Stifel Financial and Unum go up and down completely randomly.
Pair Corralation between Stifel Financial and Unum
Considering the 90-day investment horizon Stifel Financial is expected to generate 1.82 times more return on investment than Unum. However, Stifel Financial is 1.82 times more volatile than Unum Group. It trades about 0.02 of its potential returns per unit of risk. Unum Group is currently generating about 0.03 per unit of risk. If you would invest 2,014 in Stifel Financial on August 31, 2024 and sell it today you would earn a total of 200.00 from holding Stifel Financial or generate 9.93% 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. Unum Group
Performance |
| Timeline |
| Stifel Financial |
| Unum Group |
Stifel Financial and Unum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Unum
The main advantage of trading using opposite Stifel Financial and Unum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Unum 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 Unum will offset losses from the drop in Unum's long position.| Stifel Financial vs. Reinsurance Group of | Stifel Financial vs. Southern Co | Stifel Financial vs. DTE Energy Co | Stifel Financial vs. Georgia Power Co |
| Unum vs. AKITA Drilling | Unum vs. Nabors Industries | Unum vs. Getty Images Holdings | Unum vs. Precision Drilling |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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