Correlation Between SP Global and ALIBABA
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By analyzing existing cross correlation between SP Global and ALIBABA GROUP HLDG, you can compare the effects of market volatilities on SP Global and ALIBABA 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 ALIBABA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SP Global and ALIBABA.
Diversification Opportunities for SP Global and ALIBABA
Average diversification
The 3 months correlation between SPGI and ALIBABA is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding SP Global and ALIBABA GROUP HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALIBABA GROUP HLDG 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 ALIBABA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALIBABA GROUP HLDG has no effect on the direction of SP Global i.e., SP Global and ALIBABA go up and down completely randomly.
Pair Corralation between SP Global and ALIBABA
Given the investment horizon of 90 days SP Global is expected to generate 1.94 times more return on investment than ALIBABA. However, SP Global is 1.94 times more volatile than ALIBABA GROUP HLDG. It trades about 0.21 of its potential returns per unit of risk. ALIBABA GROUP HLDG is currently generating about -0.19 per unit of risk. If you would invest 49,586 in SP Global on November 9, 2024 and sell it today you would earn a total of 2,320 from holding SP Global or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.0% |
| Values | Daily Returns |
SP Global vs. ALIBABA GROUP HLDG
Performance |
| Timeline |
| SP Global |
| ALIBABA GROUP HLDG |
SP Global and ALIBABA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SP Global and ALIBABA
The main advantage of trading using opposite SP Global and ALIBABA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SP Global position performs unexpectedly, ALIBABA 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 ALIBABA will offset losses from the drop in ALIBABA's long position.| SP Global vs. MSCI Inc | SP Global vs. Nasdaq Inc | SP Global vs. Intercontinental Exchange | SP Global vs. CME Group |
| ALIBABA vs. MGIC Investment Corp | ALIBABA vs. Canaf Investments | ALIBABA vs. Toro Co | ALIBABA vs. Delaware Investments Florida |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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