Correlation Between Spir Group and Cambi ASA
Can any of the company-specific risk be diversified away by investing in both Spir Group and Cambi ASA 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 Spir Group and Cambi ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spir Group ASA and Cambi ASA, you can compare the effects of market volatilities on Spir Group and Cambi ASA 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 Spir Group with a short position of Cambi ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spir Group and Cambi ASA.
Diversification Opportunities for Spir Group and Cambi ASA
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spir and Cambi is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Spir Group ASA and Cambi ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambi ASA and Spir Group 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 Spir Group ASA are associated (or correlated) with Cambi ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambi ASA has no effect on the direction of Spir Group i.e., Spir Group and Cambi ASA go up and down completely randomly.
Pair Corralation between Spir Group and Cambi ASA
Assuming the 90 days trading horizon Spir Group is expected to generate 3.98 times less return on investment than Cambi ASA. In addition to that, Spir Group is 1.24 times more volatile than Cambi ASA. It trades about 0.1 of its total potential returns per unit of risk. Cambi ASA is currently generating about 0.49 per unit of volatility. If you would invest 1,390 in Cambi ASA on October 21, 2024 and sell it today you would earn a total of 200.00 from holding Cambi ASA or generate 14.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spir Group ASA vs. Cambi ASA
Performance |
| Timeline |
| Spir Group ASA |
| Cambi ASA |
Spir Group and Cambi ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spir Group and Cambi ASA
The main advantage of trading using opposite Spir Group and Cambi ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spir Group position performs unexpectedly, Cambi ASA 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 Cambi ASA will offset losses from the drop in Cambi ASA's long position.| Spir Group vs. Equinor ASA | Spir Group vs. DnB ASA | Spir Group vs. Aker BP ASA | Spir Group vs. Telenor ASA |
| Cambi ASA vs. Aker Horizons AS | Cambi ASA vs. Hexagon Purus As | Cambi ASA vs. Huddly AS | Cambi ASA vs. Agilyx AS |
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 Stocks Directory module to find actively traded stocks across global markets.
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