Correlation Between Spire Healthcare and State Bank
Can any of the company-specific risk be diversified away by investing in both Spire Healthcare and State Bank 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 Spire Healthcare and State Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Healthcare Group and State Bank of, you can compare the effects of market volatilities on Spire Healthcare and State Bank 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 Spire Healthcare with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Healthcare and State Bank.
Diversification Opportunities for Spire Healthcare and State Bank
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Spire and State is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Spire Healthcare Group and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank and Spire Healthcare 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 Spire Healthcare Group are associated (or correlated) with State Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Bank has no effect on the direction of Spire Healthcare i.e., Spire Healthcare and State Bank go up and down completely randomly.
Pair Corralation between Spire Healthcare and State Bank
Assuming the 90 days trading horizon Spire Healthcare Group is expected to generate 0.69 times more return on investment than State Bank. However, Spire Healthcare Group is 1.46 times less risky than State Bank. It trades about -0.12 of its potential returns per unit of risk. State Bank of is currently generating about -0.19 per unit of risk. If you would invest 23,000 in Spire Healthcare Group on November 27, 2024 and sell it today you would lose (450.00) from holding Spire Healthcare Group or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Healthcare Group vs. State Bank of
Performance |
| Timeline |
| Spire Healthcare |
| State Bank |
Spire Healthcare and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Healthcare and State Bank
The main advantage of trading using opposite Spire Healthcare and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Healthcare position performs unexpectedly, State Bank 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 State Bank will offset losses from the drop in State Bank's long position.| Spire Healthcare vs. AMG Advanced Metallurgical | Spire Healthcare vs. Empire Metals Limited | Spire Healthcare vs. Golden Metal Resources | Spire Healthcare vs. Wheaton Precious Metals |
| State Bank vs. Caledonia Mining | State Bank vs. Various Eateries PLC | State Bank vs. AfriTin Mining | State Bank vs. First Majestic Silver |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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