Correlation Between Spire Global and CI ONE
Can any of the company-specific risk be diversified away by investing in both Spire Global and CI ONE 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 CI ONE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and CI ONE North, you can compare the effects of market volatilities on Spire Global and CI ONE 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 CI ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and CI ONE.
Diversification Opportunities for Spire Global and CI ONE
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Spire and ONEB is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and CI ONE North in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI ONE North 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 CI ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI ONE North has no effect on the direction of Spire Global i.e., Spire Global and CI ONE go up and down completely randomly.
Pair Corralation between Spire Global and CI ONE
Given the investment horizon of 90 days Spire Global is expected to generate 18.44 times more return on investment than CI ONE. However, Spire Global is 18.44 times more volatile than CI ONE North. It trades about 0.18 of its potential returns per unit of risk. CI ONE North is currently generating about 0.16 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 202.00 from holding Spire Global or generate 17.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Spire Global vs. CI ONE North
Performance |
| Timeline |
| Spire Global |
| CI ONE North |
Spire Global and CI ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and CI ONE
The main advantage of trading using opposite Spire Global and CI ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, CI ONE 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 CI ONE will offset losses from the drop in CI ONE's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| CI ONE vs. CI ONE Global | CI ONE vs. CI Yield Enhanced | CI ONE vs. CI MidCap Dividend | CI ONE vs. CI Canadian Short Term |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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