Correlation Between Athelney Trust and Raymond James

Can any of the company-specific risk be diversified away by investing in both Athelney Trust 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 Athelney Trust and Raymond James into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Athelney Trust plc and Raymond James Financial, you can compare the effects of market volatilities on Athelney Trust 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 Athelney Trust with a short position of Raymond James. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athelney Trust and Raymond James.

Diversification Opportunities for Athelney Trust and Raymond James

0.65

Correlation Coefficient

Athelney Trust  Raymond James

Poor diversification

The 3 months correlation between Athelney and Raymond is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Athelney Trust plc 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 Athelney Trust 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 Athelney Trust plc 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 Athelney Trust i.e., Athelney Trust and Raymond James go up and down completely randomly.

Pair Corralation between Athelney Trust and Raymond James

Assuming the 90 days trading horizon Athelney Trust plc is expected to generate 0.58 times more return on investment than Raymond James. However, Athelney Trust plc is 1.74 times less risky than Raymond James. It trades about 0.0 of its potential returns per unit of risk. Raymond James Financial is currently generating about -0.09 per unit of risk. If you would invest  17,500  in Athelney Trust plc on December 24, 2024 and sell it today you would earn a total of  0.00  from holding Athelney Trust plc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	91.94%
Values	Daily Returns

Athelney Trust plc  vs.  Raymond James Financial

Athelney Trust plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Athelney Trust plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Athelney Trust is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Raymond James Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Raymond James Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Athelney Trust and Raymond James

The main advantage of trading using opposite Athelney Trust and Raymond James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athelney Trust 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.

The idea behind Athelney Trust plc and Raymond James Financial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.