Correlation Between Stifel Financial and Entergy New

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

By analyzing existing cross correlation between Stifel Financial and Entergy New Orleans, you can compare the effects of market volatilities on Stifel Financial and Entergy New 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 Entergy New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Entergy New.

Diversification Opportunities for Stifel Financial and Entergy New

0.11

Correlation Coefficient

Stifel Financial  Entergy New

Average diversification

The 3 months correlation between Stifel and Entergy is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Entergy New Orleans in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entergy New Orleans 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 Entergy New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entergy New Orleans has no effect on the direction of Stifel Financial i.e., Stifel Financial and Entergy New go up and down completely randomly.

Pair Corralation between Stifel Financial and Entergy New

Considering the 90-day investment horizon Stifel Financial is expected to generate 1.78 times less return on investment than Entergy New. In addition to that, Stifel Financial is 1.49 times more volatile than Entergy New Orleans. It trades about 0.04 of its total potential returns per unit of risk. Entergy New Orleans is currently generating about 0.11 per unit of volatility. If you would invest  2,165  in Entergy New Orleans on May 7, 2025 and sell it today you would earn a total of  88.00  from holding Entergy New Orleans or generate 4.06% return on investment over 90 days.

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

Stifel Financial  vs.  Entergy New Orleans

Stifel Financial

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Stifel Financial are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, Stifel Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Entergy New Orleans

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Entergy New Orleans are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Entergy New is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Stifel Financial and Entergy New

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

The idea behind Stifel Financial and Entergy New Orleans 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..