Correlation Between Spire Global and Ishares Us
Can any of the company-specific risk be diversified away by investing in both Spire Global and Ishares Us 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 Ishares Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Ishares Aggregate Bond, you can compare the effects of market volatilities on Spire Global and Ishares Us 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 Ishares Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Ishares Us.
Diversification Opportunities for Spire Global and Ishares Us
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spire and Ishares is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Ishares Aggregate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ishares Aggregate Bond 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 Ishares Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ishares Aggregate Bond has no effect on the direction of Spire Global i.e., Spire Global and Ishares Us go up and down completely randomly.
Pair Corralation between Spire Global and Ishares Us
Given the investment horizon of 90 days Spire Global is expected to generate 16.61 times more return on investment than Ishares Us. However, Spire Global is 16.61 times more volatile than Ishares Aggregate Bond. It trades about 0.08 of its potential returns per unit of risk. Ishares Aggregate Bond is currently generating about 0.06 per unit of risk. If you would invest 680.00 in Spire Global on September 4, 2024 and sell it today you would earn a total of 797.00 from holding Spire Global or generate 117.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Global vs. Ishares Aggregate Bond
Performance |
| Timeline |
| Spire Global |
| Ishares Aggregate Bond |
Spire Global and Ishares Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Ishares Us
The main advantage of trading using opposite Spire Global and Ishares Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Ishares Us 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 Ishares Us will offset losses from the drop in Ishares Us' long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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