Correlation Between New Fortress and Spire
Can any of the company-specific risk be diversified away by investing in both New Fortress and Spire 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 New Fortress and Spire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Fortress Energy and Spire Inc, you can compare the effects of market volatilities on New Fortress and Spire 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 New Fortress with a short position of Spire. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Fortress and Spire.
Diversification Opportunities for New Fortress and Spire
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and Spire is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding New Fortress Energy and Spire Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spire Inc and New Fortress 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 New Fortress Energy are associated (or correlated) with Spire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spire Inc has no effect on the direction of New Fortress i.e., New Fortress and Spire go up and down completely randomly.
Pair Corralation between New Fortress and Spire
Considering the 90-day investment horizon New Fortress Energy is expected to under-perform the Spire. In addition to that, New Fortress is 4.94 times more volatile than Spire Inc. It trades about -0.06 of its total potential returns per unit of risk. Spire Inc is currently generating about 0.05 per unit of volatility. If you would invest 2,096 in Spire Inc on August 27, 2024 and sell it today you would earn a total of 370.00 from holding Spire Inc or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Fortress Energy vs. Spire Inc
Performance |
| Timeline |
| New Fortress Energy |
| Spire Inc |
New Fortress and Spire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Fortress and Spire
The main advantage of trading using opposite New Fortress and Spire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Fortress position performs unexpectedly, Spire 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 will offset losses from the drop in Spire's long position.| New Fortress vs. FLEX LNG | New Fortress vs. Coterra Energy | New Fortress vs. Golar LNG Limited | New Fortress vs. Excelerate Energy |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |