Correlation Between Spire Global and SIG Combibloc
Can any of the company-specific risk be diversified away by investing in both Spire Global and SIG Combibloc 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 SIG Combibloc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and SIG Combibloc Group, you can compare the effects of market volatilities on Spire Global and SIG Combibloc 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 SIG Combibloc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and SIG Combibloc.
Diversification Opportunities for Spire Global and SIG Combibloc
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Spire and SIG is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and SIG Combibloc Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIG Combibloc Group 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 SIG Combibloc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIG Combibloc Group has no effect on the direction of Spire Global i.e., Spire Global and SIG Combibloc go up and down completely randomly.
Pair Corralation between Spire Global and SIG Combibloc
Given the investment horizon of 90 days Spire Global is expected to generate 2.3 times more return on investment than SIG Combibloc. However, Spire Global is 2.3 times more volatile than SIG Combibloc Group. It trades about 0.08 of its potential returns per unit of risk. SIG Combibloc Group is currently generating about -0.03 per unit of risk. If you would invest 560.00 in Spire Global on September 12, 2024 and sell it today you would earn a total of 856.00 from holding Spire Global or generate 152.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Global vs. SIG Combibloc Group
Performance |
| Timeline |
| Spire Global |
| SIG Combibloc Group |
Spire Global and SIG Combibloc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and SIG Combibloc
The main advantage of trading using opposite Spire Global and SIG Combibloc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, SIG Combibloc 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 SIG Combibloc will offset losses from the drop in SIG Combibloc's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| SIG Combibloc vs. Covestro AG | SIG Combibloc vs. Acciona SA | SIG Combibloc vs. Topaz Energy Corp | SIG Combibloc vs. Evonik Industries AG |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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