Correlation Between Spire Global and Ascelia Pharma
Can any of the company-specific risk be diversified away by investing in both Spire Global and Ascelia Pharma 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 Global and Ascelia Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Ascelia Pharma AB, you can compare the effects of market volatilities on Spire Global and Ascelia Pharma 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 Ascelia Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Ascelia Pharma.
Diversification Opportunities for Spire Global and Ascelia Pharma
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spire and Ascelia is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Ascelia Pharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascelia Pharma AB 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 Ascelia Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascelia Pharma AB has no effect on the direction of Spire Global i.e., Spire Global and Ascelia Pharma go up and down completely randomly.
Pair Corralation between Spire Global and Ascelia Pharma
Given the investment horizon of 90 days Spire Global is expected to generate 1.05 times more return on investment than Ascelia Pharma. However, Spire Global is 1.05 times more volatile than Ascelia Pharma AB. It trades about 0.31 of its potential returns per unit of risk. Ascelia Pharma AB is currently generating about 0.31 per unit of risk. If you would invest 1,091 in Spire Global on September 4, 2024 and sell it today you would earn a total of 386.00 from holding Spire Global or generate 35.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Spire Global vs. Ascelia Pharma AB
Performance |
| Timeline |
| Spire Global |
| Ascelia Pharma AB |
Spire Global and Ascelia Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Ascelia Pharma
The main advantage of trading using opposite Spire Global and Ascelia Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Ascelia Pharma 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 Ascelia Pharma will offset losses from the drop in Ascelia Pharma's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| Ascelia Pharma vs. Hansa Biopharma AB | Ascelia Pharma vs. Cantargia AB | Ascelia Pharma vs. Saniona AB | Ascelia Pharma vs. BioArctic AB |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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