Correlation Between Spire Global and ManpowerGroup
Can any of the company-specific risk be diversified away by investing in both Spire Global and ManpowerGroup 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 ManpowerGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and ManpowerGroup, you can compare the effects of market volatilities on Spire Global and ManpowerGroup 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 ManpowerGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and ManpowerGroup.
Diversification Opportunities for Spire Global and ManpowerGroup
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Spire and ManpowerGroup is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and ManpowerGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManpowerGroup 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 ManpowerGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ManpowerGroup has no effect on the direction of Spire Global i.e., Spire Global and ManpowerGroup go up and down completely randomly.
Pair Corralation between Spire Global and ManpowerGroup
Given the investment horizon of 90 days Spire Global is expected to generate 2.68 times more return on investment than ManpowerGroup. However, Spire Global is 2.68 times more volatile than ManpowerGroup. It trades about 0.59 of its potential returns per unit of risk. ManpowerGroup is currently generating about 0.05 per unit of risk. If you would invest 960.00 in Spire Global on August 28, 2024 and sell it today you would earn a total of 702.00 from holding Spire Global or generate 73.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Global vs. ManpowerGroup
Performance |
| Timeline |
| Spire Global |
| ManpowerGroup |
Spire Global and ManpowerGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and ManpowerGroup
The main advantage of trading using opposite Spire Global and ManpowerGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, ManpowerGroup 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 ManpowerGroup will offset losses from the drop in ManpowerGroup's long position.| Spire Global vs. Genpact Limited | Spire Global vs. Broadridge Financial Solutions | Spire Global vs. First Advantage Corp | Spire Global vs. Franklin Covey |
| ManpowerGroup vs. Kforce Inc | ManpowerGroup vs. Heidrick Struggles International | ManpowerGroup vs. Korn Ferry | ManpowerGroup vs. Hudson Global |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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