Correlation Between Intuitive Investments and Raymond James

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

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

Diversification Opportunities for Intuitive Investments and Raymond James

0.45

Correlation Coefficient

Intuitive Investments  Raymond James

Very weak diversification

The 3 months correlation between Intuitive and Raymond is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Investments Group 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 Intuitive Investments 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 Intuitive Investments Group 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 Intuitive Investments i.e., Intuitive Investments and Raymond James go up and down completely randomly.

Pair Corralation between Intuitive Investments and Raymond James

Assuming the 90 days trading horizon Intuitive Investments Group is expected to generate 1.37 times more return on investment than Raymond James. However, Intuitive Investments is 1.37 times more volatile than Raymond James Financial. It trades about 0.0 of its potential returns per unit of risk. Raymond James Financial is currently generating about -0.1 per unit of risk. If you would invest  10,900  in Intuitive Investments Group on December 25, 2024 and sell it today you would lose (100.00) from holding Intuitive Investments Group or give up 0.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.08%
Values	Daily Returns

Intuitive Investments Group  vs.  Raymond James Financial

Intuitive Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intuitive Investments Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Intuitive Investments is not utilizing all of its potentials. The latest 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 Intuitive Investments and Raymond James

The main advantage of trading using opposite Intuitive Investments and Raymond James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Investments 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 Intuitive Investments Group 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.