Correlation Between Applovin Corp and SPO Global
Can any of the company-specific risk be diversified away by investing in both Applovin Corp and SPO Global 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 Applovin Corp and SPO Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applovin Corp and SPO Global, you can compare the effects of market volatilities on Applovin Corp and SPO Global 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 Applovin Corp with a short position of SPO Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applovin Corp and SPO Global.
Diversification Opportunities for Applovin Corp and SPO Global
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Applovin and SPO is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Applovin Corp and SPO Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPO Global and Applovin Corp 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 Applovin Corp are associated (or correlated) with SPO Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPO Global has no effect on the direction of Applovin Corp i.e., Applovin Corp and SPO Global go up and down completely randomly.
Pair Corralation between Applovin Corp and SPO Global
Considering the 90-day investment horizon Applovin Corp is expected to generate 0.76 times more return on investment than SPO Global. However, Applovin Corp is 1.31 times less risky than SPO Global. It trades about 0.34 of its potential returns per unit of risk. SPO Global is currently generating about -0.01 per unit of risk. If you would invest 8,813 in Applovin Corp on September 2, 2024 and sell it today you would earn a total of 24,862 from holding Applovin Corp or generate 282.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Applovin Corp vs. SPO Global
Performance |
| Timeline |
| Applovin Corp |
| SPO Global |
Applovin Corp and SPO Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applovin Corp and SPO Global
The main advantage of trading using opposite Applovin Corp and SPO Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applovin Corp position performs unexpectedly, SPO Global 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 SPO Global will offset losses from the drop in SPO Global's long position.| Applovin Corp vs. Ke Holdings | Applovin Corp vs. nCino Inc | Applovin Corp vs. Kingsoft Cloud Holdings | Applovin Corp vs. Jfrog |
| SPO Global vs. Waldencast Acquisition Corp | SPO Global vs. Alkami Technology | SPO Global vs. ADEIA P | SPO Global vs. Paycor HCM |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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