Correlation Between SL Private and Raymond James

Can any of the company-specific risk be diversified away by investing in both SL Private and Raymond James 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 SL Private and Raymond James into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SL Private Equity and Raymond James Financial, you can compare the effects of market volatilities on SL Private and Raymond James 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 SL Private with a short position of Raymond James. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Private and Raymond James.

Diversification Opportunities for SL Private and Raymond James

-0.46

Correlation Coefficient

SL Private  Raymond James

Very good diversification

The 3 months correlation between SLPE and Raymond is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding SL Private Equity and Raymond James Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raymond James Financial and SL Private 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 SL Private Equity are associated (or correlated) with Raymond James. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raymond James Financial has no effect on the direction of SL Private i.e., SL Private and Raymond James go up and down completely randomly.

Pair Corralation between SL Private and Raymond James

Assuming the 90 days trading horizon SL Private is expected to generate 1.39 times less return on investment than Raymond James. In addition to that, SL Private is 1.58 times more volatile than Raymond James Financial. It trades about 0.03 of its total potential returns per unit of risk. Raymond James Financial is currently generating about 0.06 per unit of volatility. If you would invest  10,506  in Raymond James Financial on April 24, 2025 and sell it today you would earn a total of  5,430  from holding Raymond James Financial or generate 51.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	90.56%
Values	Daily Returns

SL Private Equity  vs.  Raymond James Financial

SL Private Equity

Risk-Adjusted Performance

Very Weak

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

Raymond James Financial

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Raymond James Financial are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Raymond James unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SL Private and Raymond James

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

The idea behind SL Private Equity and Raymond James 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.