Correlation Between Spire Global and Absa Multi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Spire Global and Absa Multi Managed, you can compare the effects of market volatilities on Spire Global and Absa Multi 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 Global with a short position of Absa Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Absa Multi.
Diversification Opportunities for Spire Global and Absa Multi
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spire and Absa is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Absa Multi Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absa Multi Managed and Spire 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 Spire Global are associated (or correlated) with Absa Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absa Multi Managed has no effect on the direction of Spire Global i.e., Spire Global and Absa Multi go up and down completely randomly.
Pair Corralation between Spire Global and Absa Multi
Given the investment horizon of 90 days Spire Global is expected to generate 13.33 times more return on investment than Absa Multi. However, Spire Global is 13.33 times more volatile than Absa Multi Managed. It trades about 0.05 of its potential returns per unit of risk. Absa Multi Managed is currently generating about 0.09 per unit of risk. If you would invest 960.00 in Spire Global on September 5, 2024 and sell it today you would earn a total of 517.00 from holding Spire Global or generate 53.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.79% |
| Values | Daily Returns |
Spire Global vs. Absa Multi Managed
Performance |
| Timeline |
| Spire Global |
| Absa Multi Managed |
Spire Global and Absa Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Absa Multi
The main advantage of trading using opposite Spire Global and Absa Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Absa Multi 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 Absa Multi will offset losses from the drop in Absa Multi's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| Absa Multi vs. Sasol Ltd Bee | Absa Multi vs. Centaur Bci Balanced | Absa Multi vs. Sabvest Capital | Absa Multi vs. Growthpoint Properties |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |