Correlation Between Hut 8 and Stifel Financial

Can any of the company-specific risk be diversified away by investing in both Hut 8 and Stifel Financial 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 Hut 8 and Stifel Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hut 8 Corp and Stifel Financial, you can compare the effects of market volatilities on Hut 8 and Stifel Financial 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 Hut 8 with a short position of Stifel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hut 8 and Stifel Financial.

Diversification Opportunities for Hut 8 and Stifel Financial

0.69

Correlation Coefficient

Hut 8  Stifel Financial

Poor diversification

The 3 months correlation between Hut and Stifel is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hut 8 Corp and Stifel Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stifel Financial and Hut 8 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 Hut 8 Corp are associated (or correlated) with Stifel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stifel Financial has no effect on the direction of Hut 8 i.e., Hut 8 and Stifel Financial go up and down completely randomly.

Pair Corralation between Hut 8 and Stifel Financial

Considering the 90-day investment horizon Hut 8 Corp is expected to under-perform the Stifel Financial. In addition to that, Hut 8 is 3.12 times more volatile than Stifel Financial. It trades about -0.12 of its total potential returns per unit of risk. Stifel Financial is currently generating about -0.04 per unit of volatility. If you would invest  10,725  in Stifel Financial on December 26, 2024 and sell it today you would lose (537.00) from holding Stifel Financial or give up 5.01% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Hut 8 Corp  vs.  Stifel Financial

Hut 8 Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hut 8 Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Stifel Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stifel Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Stifel Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Hut 8 and Stifel Financial

The main advantage of trading using opposite Hut 8 and Stifel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hut 8 position performs unexpectedly, Stifel Financial 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 Stifel Financial will offset losses from the drop in Stifel Financial's long position.

The idea behind Hut 8 Corp and Stifel 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.