Correlation Between Spire Global and Motive Capital
Can any of the company-specific risk be diversified away by investing in both Spire Global and Motive Capital 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 Motive Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Motive Capital Corp, you can compare the effects of market volatilities on Spire Global and Motive Capital 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 Motive Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Motive Capital.
Diversification Opportunities for Spire Global and Motive Capital
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Spire and Motive is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Motive Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Motive Capital Corp 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 Motive Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Motive Capital Corp has no effect on the direction of Spire Global i.e., Spire Global and Motive Capital go up and down completely randomly.
Pair Corralation between Spire Global and Motive Capital
If you would invest 1,150 in Spire Global on September 12, 2024 and sell it today you would earn a total of 240.50 from holding Spire Global or generate 20.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Spire Global vs. Motive Capital Corp
Performance |
| Timeline |
| Spire Global |
| Motive Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Spire Global and Motive Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Motive Capital
The main advantage of trading using opposite Spire Global and Motive Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Motive Capital 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 Motive Capital will offset losses from the drop in Motive Capital's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| Motive Capital vs. Mars Acquisition Corp | Motive Capital vs. Israel Acquisitions Corp | Motive Capital vs. Golden Star Acquisition | Motive Capital vs. Consilium Acquisition I |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |