Correlation Between Spire Global and Bilfinger
Can any of the company-specific risk be diversified away by investing in both Spire Global and Bilfinger 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 Bilfinger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Bilfinger SE, you can compare the effects of market volatilities on Spire Global and Bilfinger 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 Bilfinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Bilfinger.
Diversification Opportunities for Spire Global and Bilfinger
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Spire and Bilfinger is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Bilfinger SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilfinger SE 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 Bilfinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilfinger SE has no effect on the direction of Spire Global i.e., Spire Global and Bilfinger go up and down completely randomly.
Pair Corralation between Spire Global and Bilfinger
Given the investment horizon of 90 days Spire Global is expected to generate 2.25 times more return on investment than Bilfinger. However, Spire Global is 2.25 times more volatile than Bilfinger SE. It trades about 0.2 of its potential returns per unit of risk. Bilfinger SE is currently generating about -0.01 per unit of risk. If you would invest 856.00 in Spire Global on September 12, 2024 and sell it today you would earn a total of 529.50 from holding Spire Global or generate 61.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Spire Global vs. Bilfinger SE
Performance |
| Timeline |
| Spire Global |
| Bilfinger SE |
Spire Global and Bilfinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Bilfinger
The main advantage of trading using opposite Spire Global and Bilfinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Bilfinger 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 Bilfinger will offset losses from the drop in Bilfinger's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| Bilfinger vs. BOSTON BEER A | Bilfinger vs. United Breweries Co | Bilfinger vs. MagnaChip Semiconductor Corp | Bilfinger vs. Westinghouse Air Brake |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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