Correlation Between Accretion Acquisition and Spire Global
Can any of the company-specific risk be diversified away by investing in both Accretion Acquisition and Spire 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 Accretion Acquisition and Spire Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accretion Acquisition Corp and Spire Global, you can compare the effects of market volatilities on Accretion Acquisition and Spire 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 Accretion Acquisition with a short position of Spire Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accretion Acquisition and Spire Global.
Diversification Opportunities for Accretion Acquisition and Spire Global
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Accretion and Spire is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Accretion Acquisition Corp and Spire Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spire Global and Accretion Acquisition 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 Accretion Acquisition Corp are associated (or correlated) with Spire Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spire Global has no effect on the direction of Accretion Acquisition i.e., Accretion Acquisition and Spire Global go up and down completely randomly.
Pair Corralation between Accretion Acquisition and Spire Global
If you would invest 554.00 in Spire Global on August 29, 2024 and sell it today you would earn a total of 1,063 from holding Spire Global or generate 191.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.32% |
| Values | Daily Returns |
Accretion Acquisition Corp vs. Spire Global
Performance |
| Timeline |
| Accretion Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Spire Global |
Accretion Acquisition and Spire Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accretion Acquisition and Spire Global
The main advantage of trading using opposite Accretion Acquisition and Spire Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accretion Acquisition position performs unexpectedly, Spire 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 Spire Global will offset losses from the drop in Spire Global's long position.| Accretion Acquisition vs. Welsbach Technology Metals | Accretion Acquisition vs. Broad Capital Acquisition | Accretion Acquisition vs. Alpha One | Accretion Acquisition vs. Manaris Corp |
| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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