Correlation Between Raymond James and CM Hospitalar

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

Diversification Opportunities for Raymond James and CM Hospitalar

-0.4

Correlation Coefficient

Raymond James  CM Hospitalar

Very good diversification

The 3 months correlation between Raymond and VVEO3 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial, and CM Hospitalar SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM Hospitalar SA 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 CM Hospitalar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM Hospitalar SA has no effect on the direction of Raymond James i.e., Raymond James and CM Hospitalar go up and down completely randomly.

Pair Corralation between Raymond James and CM Hospitalar

Assuming the 90 days trading horizon Raymond James Financial, is expected to generate 0.45 times more return on investment than CM Hospitalar. However, Raymond James Financial, is 2.2 times less risky than CM Hospitalar. It trades about 0.15 of its potential returns per unit of risk. CM Hospitalar SA is currently generating about -0.02 per unit of risk. If you would invest  36,614  in Raymond James Financial, on April 20, 2025 and sell it today you would earn a total of  5,344  from holding Raymond James Financial, or generate 14.6% return on investment over 90 days.

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

Raymond James Financial,  vs.  CM Hospitalar SA

Raymond James Financial,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Raymond James Financial, are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward-looking indicators, Raymond James sustained solid returns over the last few months and may actually be approaching a breakup point.

CM Hospitalar SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days CM Hospitalar SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CM Hospitalar is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Raymond James and CM Hospitalar

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

The idea behind Raymond James Financial, and CM Hospitalar SA 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.