Correlation Between Raymond James and BGC Partners

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Can any of the company-specific risk be diversified away by investing in both Raymond James and BGC Partners 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 BGC Partners 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 BGC Partners, you can compare the effects of market volatilities on Raymond James and BGC Partners 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 BGC Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raymond James and BGC Partners.

Diversification Opportunities for Raymond James and BGC Partners

0.57
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Raymond and BGC Partners is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial and BGC Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGC Partners 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 BGC Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGC Partners has no effect on the direction of Raymond James i.e., Raymond James and BGC Partners go up and down completely randomly.

Pair Corralation between Raymond James and BGC Partners

Considering the 90-day investment horizon Raymond James Financial is expected to generate 0.73 times more return on investment than BGC Partners. However, Raymond James Financial is 1.38 times less risky than BGC Partners. It trades about 0.08 of its potential returns per unit of risk. BGC Partners is currently generating about 0.02 per unit of risk. If you would invest  6,151  in Raymond James Financial on September 8, 2022 and sell it today you would earn a total of  5,240  from holding Raymond James Financial or generate 85.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Raymond James Financial  vs.  BGC Partners

 Performance (%) 
       Timeline  
Raymond James Financial 
Raymond Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Raymond James Financial are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain forward-looking indicators, Raymond James may actually be approaching a critical reversion point that can send shares even higher in January 2023.

Raymond Price Channel

BGC Partners 
BGC Partners Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in BGC Partners are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, BGC Partners may actually be approaching a critical reversion point that can send shares even higher in January 2023.

BGC Partners Price Channel

Raymond James and BGC Partners Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Raymond James and BGC Partners

The main advantage of trading using opposite Raymond James and BGC Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James position performs unexpectedly, BGC Partners 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 BGC Partners will offset losses from the drop in BGC Partners' long position.
Raymond James vs. Caterpillar
Raymond James vs. Walmart
Raymond James vs. Pfizer Inc
Raymond James vs. ATT Inc
The idea behind Raymond James Financial and BGC Partners 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.
BGC Partners vs. Caterpillar
BGC Partners vs. Walmart
BGC Partners vs. Pfizer Inc
BGC Partners vs. ATT Inc
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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