Correlation Between FactSet Research and Stifel Financial

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

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

Diversification Opportunities for FactSet Research and Stifel Financial

-0.27

Correlation Coefficient

FactSet Research  Stifel Financial

Very good diversification

The 3 months correlation between FactSet and Stifel is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding FactSet Research Systems and Stifel Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stifel Financial and FactSet Research 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 FactSet Research Systems are associated (or correlated) with Stifel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stifel Financial has no effect on the direction of FactSet Research i.e., FactSet Research and Stifel Financial go up and down completely randomly.

Pair Corralation between FactSet Research and Stifel Financial

Considering the 90-day investment horizon FactSet Research Systems is expected to under-perform the Stifel Financial. In addition to that, FactSet Research is 1.53 times more volatile than Stifel Financial. It trades about -0.14 of its total potential returns per unit of risk. Stifel Financial is currently generating about 0.14 per unit of volatility. If you would invest  11,486  in Stifel Financial on September 12, 2025 and sell it today you would earn a total of  1,513  from holding Stifel Financial or generate 13.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

FactSet Research Systems  vs.  Stifel Financial

FactSet Research Systems

Risk-Adjusted Performance

Weakest

Over the last 90 days FactSet Research Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Stifel Financial

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Stifel Financial are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Stifel Financial reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FactSet Research and Stifel Financial

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

The idea behind FactSet Research Systems and Stifel 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .