Correlation Between Spire Global and Calvert International
Can any of the company-specific risk be diversified away by investing in both Spire Global and Calvert International 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 Calvert International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Calvert International Equity, you can compare the effects of market volatilities on Spire Global and Calvert International 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 Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Calvert International.
Diversification Opportunities for Spire Global and Calvert International
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Spire and Calvert is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International 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 Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of Spire Global i.e., Spire Global and Calvert International go up and down completely randomly.
Pair Corralation between Spire Global and Calvert International
Given the investment horizon of 90 days Spire Global is expected to generate 3.11 times less return on investment than Calvert International. In addition to that, Spire Global is 12.46 times more volatile than Calvert International Equity. It trades about 0.01 of its total potential returns per unit of risk. Calvert International Equity is currently generating about 0.2 per unit of volatility. If you would invest 2,383 in Calvert International Equity on November 30, 2024 and sell it today you would earn a total of 151.00 from holding Calvert International Equity or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Global vs. Calvert International Equity
Performance |
| Timeline |
| Spire Global |
| Calvert International |
Spire Global and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Calvert International
The main advantage of trading using opposite Spire Global and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Calvert International 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 Calvert International will offset losses from the drop in Calvert International's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Network 1 Technologies |
| Calvert International vs. Virtus Seix Government | Calvert International vs. Western Asset Premier | Calvert International vs. Inverse Government Long | Calvert International vs. Us Government Securities |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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