Correlation Between SP Global and Black Spade
Can any of the company-specific risk be diversified away by investing in both SP Global and Black Spade 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 SP Global and Black Spade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SP Global and Black Spade Acquisition, you can compare the effects of market volatilities on SP Global and Black Spade 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 SP Global with a short position of Black Spade. Check out your portfolio center. Please also check ongoing floating volatility patterns of SP Global and Black Spade.
Diversification Opportunities for SP Global and Black Spade
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SPGI and Black is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SP Global and Black Spade Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Spade Acquisition and SP Global 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 SP Global are associated (or correlated) with Black Spade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Spade Acquisition has no effect on the direction of SP Global i.e., SP Global and Black Spade go up and down completely randomly.
Pair Corralation between SP Global and Black Spade
Given the investment horizon of 90 days SP Global is expected to generate 4.84 times more return on investment than Black Spade. However, SP Global is 4.84 times more volatile than Black Spade Acquisition. It trades about 0.07 of its potential returns per unit of risk. Black Spade Acquisition is currently generating about 0.06 per unit of risk. If you would invest 35,759 in SP Global on November 1, 2024 and sell it today you would earn a total of 16,744 from holding SP Global or generate 46.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 21.26% |
| Values | Daily Returns |
SP Global vs. Black Spade Acquisition
Performance |
| Timeline |
| SP Global |
| Black Spade Acquisition |
SP Global and Black Spade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SP Global and Black Spade
The main advantage of trading using opposite SP Global and Black Spade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SP Global position performs unexpectedly, Black Spade 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 Black Spade will offset losses from the drop in Black Spade's long position.| SP Global vs. MSCI Inc | SP Global vs. Nasdaq Inc | SP Global vs. Intercontinental Exchange | SP Global vs. CME Group |
| Black Spade vs. Canaf Investments | Black Spade vs. Freedom Holding Corp | Black Spade vs. Cardinal Health | Black Spade vs. HUTCHMED DRC |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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