Correlation Between Virtu Financial and Raymond James
Can any of the company-specific risk be diversified away by investing in both Virtu Financial and Raymond James 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 Virtu Financial and Raymond James into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtu Financial and Raymond James Financial, you can compare the effects of market volatilities on Virtu Financial and Raymond James 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 Virtu Financial with a short position of Raymond James. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtu Financial and Raymond James.
Diversification Opportunities for Virtu Financial and Raymond James
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Virtu and Raymond is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Virtu Financial and Raymond James Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raymond James Financial and Virtu 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 Virtu Financial are associated (or correlated) with Raymond James. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raymond James Financial has no effect on the direction of Virtu Financial i.e., Virtu Financial and Raymond James go up and down completely randomly.
Pair Corralation between Virtu Financial and Raymond James
Given the investment horizon of 90 days Virtu Financial is expected to generate 1.37 times more return on investment than Raymond James. However, Virtu Financial is 1.37 times more volatile than Raymond James Financial. It trades about 0.11 of its potential returns per unit of risk. Raymond James Financial is currently generating about 0.12 per unit of risk. If you would invest 1,695 in Virtu Financial on September 2, 2024 and sell it today you would earn a total of 2,036 from holding Virtu Financial or generate 120.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtu Financial vs. Raymond James Financial
Performance |
| Timeline |
| Virtu Financial |
| Raymond James Financial |
Virtu Financial and Raymond James Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtu Financial and Raymond James
The main advantage of trading using opposite Virtu Financial and Raymond James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtu Financial position performs unexpectedly, Raymond James 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 Raymond James will offset losses from the drop in Raymond James' long position.| Virtu Financial vs. Perella Weinberg Partners | Virtu Financial vs. Evercore Partners | Virtu Financial vs. Lazard | Virtu Financial vs. Piper Sandler Companies |
| Raymond James vs. Tradeweb Markets | Raymond James vs. PJT Partners | Raymond James vs. Moelis Co | Raymond James vs. LPL Financial 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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