Correlation Between Spire Global and Multi Index
Can any of the company-specific risk be diversified away by investing in both Spire Global and Multi Index 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 Multi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Multi Index 2040 Lifetime, you can compare the effects of market volatilities on Spire Global and Multi Index 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 Multi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Multi Index.
Diversification Opportunities for Spire Global and Multi Index
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spire and Multi is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Multi Index 2040 Lifetime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Index 2040 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 Multi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Index 2040 has no effect on the direction of Spire Global i.e., Spire Global and Multi Index go up and down completely randomly.
Pair Corralation between Spire Global and Multi Index
Given the investment horizon of 90 days Spire Global is expected to generate 11.96 times more return on investment than Multi Index. However, Spire Global is 11.96 times more volatile than Multi Index 2040 Lifetime. It trades about 0.18 of its potential returns per unit of risk. Multi Index 2040 Lifetime is currently generating about 0.18 per unit of risk. If you would invest 1,179 in Spire Global on September 13, 2024 and sell it today you would earn a total of 201.00 from holding Spire Global or generate 17.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Global vs. Multi Index 2040 Lifetime
Performance |
| Timeline |
| Spire Global |
| Multi Index 2040 |
Spire Global and Multi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Multi Index
The main advantage of trading using opposite Spire Global and Multi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Multi Index 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 Multi Index will offset losses from the drop in Multi Index's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| Multi Index vs. Regional Bank Fund | Multi Index vs. Regional Bank Fund | Multi Index vs. Multimanager Lifestyle Moderate | Multi Index vs. Multimanager Lifestyle Balanced |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |