Correlation Between Spire Global and Agfa Gevaert
Can any of the company-specific risk be diversified away by investing in both Spire Global and Agfa Gevaert 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 Agfa Gevaert into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Agfa Gevaert NV, you can compare the effects of market volatilities on Spire Global and Agfa Gevaert 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 Agfa Gevaert. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Agfa Gevaert.
Diversification Opportunities for Spire Global and Agfa Gevaert
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spire and Agfa is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Agfa Gevaert NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agfa Gevaert NV 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 Agfa Gevaert. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agfa Gevaert NV has no effect on the direction of Spire Global i.e., Spire Global and Agfa Gevaert go up and down completely randomly.
Pair Corralation between Spire Global and Agfa Gevaert
Given the investment horizon of 90 days Spire Global is expected to generate 0.56 times more return on investment than Agfa Gevaert. However, Spire Global is 1.78 times less risky than Agfa Gevaert. It trades about 0.24 of its potential returns per unit of risk. Agfa Gevaert NV is currently generating about -0.21 per unit of risk. If you would invest 1,150 in Spire Global on September 12, 2024 and sell it today you would earn a total of 266.00 from holding Spire Global or generate 23.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Spire Global vs. Agfa Gevaert NV
Performance |
| Timeline |
| Spire Global |
| Agfa Gevaert NV |
Spire Global and Agfa Gevaert Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Agfa Gevaert
The main advantage of trading using opposite Spire Global and Agfa Gevaert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Agfa Gevaert 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 Agfa Gevaert will offset losses from the drop in Agfa Gevaert's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| Agfa Gevaert vs. Enerpac Tool Group | Agfa Gevaert vs. Omega Flex | Agfa Gevaert vs. Luxfer Holdings PLC | Agfa Gevaert vs. Gorman Rupp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |