Correlation Between Suburban Propane and Spire
Can any of the company-specific risk be diversified away by investing in both Suburban Propane 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 Suburban Propane and Spire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suburban Propane Partners and Spire Inc, you can compare the effects of market volatilities on Suburban Propane 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 Suburban Propane with a short position of Spire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suburban Propane and Spire.
Diversification Opportunities for Suburban Propane and Spire
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Suburban and Spire is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Suburban Propane Partners and Spire Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spire Inc and Suburban Propane 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 Suburban Propane Partners 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 Suburban Propane i.e., Suburban Propane and Spire go up and down completely randomly.
Pair Corralation between Suburban Propane and Spire
Considering the 90-day investment horizon Suburban Propane Partners is expected to under-perform the Spire. In addition to that, Suburban Propane is 1.45 times more volatile than Spire Inc. It trades about -0.01 of its total potential returns per unit of risk. Spire Inc is currently generating about 0.14 per unit of volatility. If you would invest 5,792 in Spire Inc on August 24, 2024 and sell it today you would earn a total of 1,274 from holding Spire Inc or generate 22.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Suburban Propane Partners vs. Spire Inc
Performance |
| Timeline |
| Suburban Propane Partners |
| Spire Inc |
Suburban Propane and Spire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suburban Propane and Spire
The main advantage of trading using opposite Suburban Propane and Spire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suburban Propane 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.| Suburban Propane vs. Northwest Natural Gas | Suburban Propane vs. NewJersey Resources | Suburban Propane vs. Atmos Energy | Suburban Propane vs. Chesapeake Utilities |
| Spire vs. Northwest Natural Gas | Spire vs. Chesapeake Utilities | Spire vs. One Gas | Spire vs. NewJersey Resources |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |