Correlation Between Raymond James and Garden Stage
Can any of the company-specific risk be diversified away by investing in both Raymond James and Garden Stage 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 Raymond James and Garden Stage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raymond James Financial and Garden Stage Limited, you can compare the effects of market volatilities on Raymond James and Garden Stage 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 Raymond James with a short position of Garden Stage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raymond James and Garden Stage.
Diversification Opportunities for Raymond James and Garden Stage
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Raymond and Garden is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial and Garden Stage Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garden Stage Limited and Raymond James 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 Raymond James Financial are associated (or correlated) with Garden Stage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garden Stage Limited has no effect on the direction of Raymond James i.e., Raymond James and Garden Stage go up and down completely randomly.
Pair Corralation between Raymond James and Garden Stage
Assuming the 90 days trading horizon Raymond James is expected to generate 8.71 times less return on investment than Garden Stage. But when comparing it to its historical volatility, Raymond James Financial is 299.47 times less risky than Garden Stage. It trades about 0.17 of its potential returns per unit of risk. Garden Stage Limited is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,220 in Garden Stage Limited on September 12, 2024 and sell it today you would lose (1,156) from holding Garden Stage Limited or give up 94.75% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Raymond James Financial vs. Garden Stage Limited
Performance |
Timeline |
Raymond James Financial |
Garden Stage Limited |
Raymond James and Garden Stage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Raymond James and Garden Stage
The main advantage of trading using opposite Raymond James and Garden Stage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James position performs unexpectedly, Garden Stage 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 Garden Stage will offset losses from the drop in Garden Stage's long position.Raymond James vs. Washington Federal | Raymond James vs. Truist Financial | Raymond James vs. The Charles Schwab | Raymond James vs. Associated Banc Corp |
Garden Stage vs. Scully Royalty | Garden Stage vs. Oppenheimer Holdings | Garden Stage vs. Houlihan Lokey | Garden Stage vs. Stonex Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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