Correlation Between Spire Global and Kelly Services
Can any of the company-specific risk be diversified away by investing in both Spire Global and Kelly Services 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 Kelly Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Kelly Services A, you can compare the effects of market volatilities on Spire Global and Kelly Services 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 Kelly Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Kelly Services.
Diversification Opportunities for Spire Global and Kelly Services
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spire and Kelly is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Kelly Services A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Services A 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 Kelly Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Services A has no effect on the direction of Spire Global i.e., Spire Global and Kelly Services go up and down completely randomly.
Pair Corralation between Spire Global and Kelly Services
Given the investment horizon of 90 days Spire Global is expected to generate 2.68 times more return on investment than Kelly Services. However, Spire Global is 2.68 times more volatile than Kelly Services A. It trades about 0.05 of its potential returns per unit of risk. Kelly Services A is currently generating about 0.01 per unit of risk. If you would invest 968.00 in Spire Global on August 30, 2024 and sell it today you would earn a total of 649.00 from holding Spire Global or generate 67.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Global vs. Kelly Services A
Performance |
| Timeline |
| Spire Global |
| Kelly Services A |
Spire Global and Kelly Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Kelly Services
The main advantage of trading using opposite Spire Global and Kelly Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Kelly Services 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 Kelly Services will offset losses from the drop in Kelly Services' long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| Kelly Services vs. Korn Ferry | Kelly Services vs. Heidrick Struggles International | Kelly Services vs. Hudson Global | Kelly Services vs. ManpowerGroup |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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