Correlation Between Spire Global and FLYHT Aerospace
Can any of the company-specific risk be diversified away by investing in both Spire Global and FLYHT Aerospace 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 FLYHT Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and FLYHT Aerospace Solutions, you can compare the effects of market volatilities on Spire Global and FLYHT Aerospace 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 FLYHT Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and FLYHT Aerospace.
Diversification Opportunities for Spire Global and FLYHT Aerospace
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Spire and FLYHT is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and FLYHT Aerospace Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLYHT Aerospace Solutions 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 FLYHT Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLYHT Aerospace Solutions has no effect on the direction of Spire Global i.e., Spire Global and FLYHT Aerospace go up and down completely randomly.
Pair Corralation between Spire Global and FLYHT Aerospace
Given the investment horizon of 90 days Spire Global is expected to generate 0.92 times more return on investment than FLYHT Aerospace. However, Spire Global is 1.08 times less risky than FLYHT Aerospace. It trades about 0.09 of its potential returns per unit of risk. FLYHT Aerospace Solutions is currently generating about -0.01 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 877.00 from holding Spire Global or generate 128.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Global vs. FLYHT Aerospace Solutions
Performance |
| Timeline |
| Spire Global |
| FLYHT Aerospace Solutions |
Spire Global and FLYHT Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and FLYHT Aerospace
The main advantage of trading using opposite Spire Global and FLYHT Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, FLYHT Aerospace 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 FLYHT Aerospace will offset losses from the drop in FLYHT Aerospace's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| FLYHT Aerospace vs. Firan Technology Group | FLYHT Aerospace vs. AnalytixInsight | FLYHT Aerospace vs. Baylin Technologies | FLYHT Aerospace vs. Bewhere Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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