Correlation Between Stifel Financial and SAI Old

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

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

Diversification Opportunities for Stifel Financial and SAI Old

0.0

Correlation Coefficient

Stifel Financial  SAI Old

Pay attention - limited upside

The 3 months correlation between Stifel and SAI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial Corp and SAI Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAI Old and Stifel 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 Stifel Financial Corp are associated (or correlated) with SAI Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAI Old has no effect on the direction of Stifel Financial i.e., Stifel Financial and SAI Old go up and down completely randomly.

Pair Corralation between Stifel Financial and SAI Old

If you would invest (100.00) in SAI Old on December 29, 2024 and sell it today you would earn a total of  100.00  from holding SAI Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Stifel Financial Corp  vs.  SAI Old

Stifel Financial Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stifel Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Stifel Financial is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

SAI Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days SAI Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, SAI Old is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Stifel Financial and SAI Old

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

The idea behind Stifel Financial Corp and SAI Old 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.