Correlation Between MoneysupermarketCom and Raymond James

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

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

Diversification Opportunities for MoneysupermarketCom and Raymond James

-0.52

Correlation Coefficient

MoneysupermarketCom  Raymond James

Excellent diversification

The 3 months correlation between MoneysupermarketCom and Raymond is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding MoneysupermarketCom Group 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 MoneysupermarketCom 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 MoneysupermarketCom Group 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 MoneysupermarketCom i.e., MoneysupermarketCom and Raymond James go up and down completely randomly.

Pair Corralation between MoneysupermarketCom and Raymond James

Assuming the 90 days trading horizon MoneysupermarketCom Group PLC is expected to under-perform the Raymond James. But the stock apears to be less risky and, when comparing its historical volatility, MoneysupermarketCom Group PLC is 2.08 times less risky than Raymond James. The stock trades about -0.36 of its potential returns per unit of risk. The Raymond James Financial is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  16,105  in Raymond James Financial on October 12, 2024 and sell it today you would lose (218.00) from holding Raymond James Financial or give up 1.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	84.21%
Values	Daily Returns

MoneysupermarketCom Group PLC  vs.  Raymond James Financial

MoneysupermarketCom

Risk-Adjusted Performance

0 of 100

Very Weak

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

Raymond James Financial

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Raymond James Financial are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Raymond James unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MoneysupermarketCom and Raymond James

The main advantage of trading using opposite MoneysupermarketCom and Raymond James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneysupermarketCom 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 MoneysupermarketCom Group 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.