Correlation Between Spire Global and LUNDIN MINING
Can any of the company-specific risk be diversified away by investing in both Spire Global and LUNDIN MINING 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 LUNDIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and LUNDIN MINING, you can compare the effects of market volatilities on Spire Global and LUNDIN MINING 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 LUNDIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and LUNDIN MINING.
Diversification Opportunities for Spire Global and LUNDIN MINING
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Spire and LUNDIN is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and LUNDIN MINING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LUNDIN MINING 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 LUNDIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LUNDIN MINING has no effect on the direction of Spire Global i.e., Spire Global and LUNDIN MINING go up and down completely randomly.
Pair Corralation between Spire Global and LUNDIN MINING
Given the investment horizon of 90 days Spire Global is expected to generate 2.21 times more return on investment than LUNDIN MINING. However, Spire Global is 2.21 times more volatile than LUNDIN MINING. It trades about 0.05 of its potential returns per unit of risk. LUNDIN MINING is currently generating about 0.05 per unit of risk. If you would invest 1,008 in Spire Global on September 4, 2024 and sell it today you would earn a total of 549.00 from holding Spire Global or generate 54.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.14% |
| Values | Daily Returns |
Spire Global vs. LUNDIN MINING
Performance |
| Timeline |
| Spire Global |
| LUNDIN MINING |
Spire Global and LUNDIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and LUNDIN MINING
The main advantage of trading using opposite Spire Global and LUNDIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, LUNDIN MINING 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 LUNDIN MINING will offset losses from the drop in LUNDIN MINING's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| LUNDIN MINING vs. SOUTHWEST AIRLINES | LUNDIN MINING vs. ONWARD MEDICAL BV | LUNDIN MINING vs. Perseus Mining Limited | LUNDIN MINING vs. International Consolidated Airlines |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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