Correlation Between Spire Global and WINMARK
Can any of the company-specific risk be diversified away by investing in both Spire Global and WINMARK 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 WINMARK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and WINMARK, you can compare the effects of market volatilities on Spire Global and WINMARK 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 WINMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and WINMARK.
Diversification Opportunities for Spire Global and WINMARK
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Spire and WINMARK is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and WINMARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WINMARK 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 WINMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WINMARK has no effect on the direction of Spire Global i.e., Spire Global and WINMARK go up and down completely randomly.
Pair Corralation between Spire Global and WINMARK
Given the investment horizon of 90 days Spire Global is expected to generate 3.16 times more return on investment than WINMARK. However, Spire Global is 3.16 times more volatile than WINMARK. It trades about 0.08 of its potential returns per unit of risk. WINMARK is currently generating about 0.0 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 Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Spire Global vs. WINMARK
Performance |
| Timeline |
| Spire Global |
| WINMARK |
Spire Global and WINMARK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and WINMARK
The main advantage of trading using opposite Spire Global and WINMARK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, WINMARK 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 WINMARK will offset losses from the drop in WINMARK's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| WINMARK vs. SALESFORCE INC CDR | WINMARK vs. AOI Electronics Co | WINMARK vs. STORE ELECTRONIC | WINMARK vs. GungHo Online Entertainment |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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