Correlation Between Stifel Financial and First Commonwealth
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and First Commonwealth 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 First Commonwealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and First Commonwealth Financial, you can compare the effects of market volatilities on Stifel Financial and First Commonwealth 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 First Commonwealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and First Commonwealth.
Diversification Opportunities for Stifel Financial and First Commonwealth
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stifel and First is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and First Commonwealth Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Commonwealth 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 are associated (or correlated) with First Commonwealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Commonwealth has no effect on the direction of Stifel Financial i.e., Stifel Financial and First Commonwealth go up and down completely randomly.
Pair Corralation between Stifel Financial and First Commonwealth
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 0.87 times more return on investment than First Commonwealth. However, Stifel Financial is 1.14 times less risky than First Commonwealth. It trades about 0.08 of its potential returns per unit of risk. First Commonwealth Financial is currently generating about -0.03 per unit of risk. If you would invest 11,325 in Stifel Financial on August 18, 2025 and sell it today you would earn a total of 755.00 from holding Stifel Financial or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stifel Financial vs. First Commonwealth Financial
Performance |
| Timeline |
| Stifel Financial |
| First Commonwealth |
Stifel Financial and First Commonwealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and First Commonwealth
The main advantage of trading using opposite Stifel Financial and First Commonwealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, First Commonwealth 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 First Commonwealth will offset losses from the drop in First Commonwealth's long position.| Stifel Financial vs. Evercore Partners | Stifel Financial vs. Houlihan Lokey | Stifel Financial vs. Jefferies Financial Group | Stifel Financial vs. Galaxy Digital Holdings |
| First Commonwealth vs. Northwest Bancshares | First Commonwealth vs. ST Bancorp | First Commonwealth vs. Stellar Bancorp, | First Commonwealth vs. City Holding |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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