Correlation Between Spire Global and Accretion Acquisition
Can any of the company-specific risk be diversified away by investing in both Spire Global and Accretion Acquisition 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 Accretion Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Accretion Acquisition Corp, you can compare the effects of market volatilities on Spire Global and Accretion Acquisition 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 Accretion Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Accretion Acquisition.
Diversification Opportunities for Spire Global and Accretion Acquisition
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spire and Accretion is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Accretion Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accretion Acquisition 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 Accretion Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accretion Acquisition has no effect on the direction of Spire Global i.e., Spire Global and Accretion Acquisition go up and down completely randomly.
Pair Corralation between Spire Global and Accretion Acquisition
If you would invest 919.00 in Spire Global on August 26, 2024 and sell it today you would earn a total of 679.00 from holding Spire Global or generate 73.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Spire Global vs. Accretion Acquisition Corp
Performance |
| Timeline |
| Spire Global |
| Accretion Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Spire Global and Accretion Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Accretion Acquisition
The main advantage of trading using opposite Spire Global and Accretion Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Accretion Acquisition 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 Accretion Acquisition will offset losses from the drop in Accretion Acquisition's 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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