Correlation Between Spire Global and Sif Holding
Can any of the company-specific risk be diversified away by investing in both Spire Global and Sif Holding 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 Sif Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Sif Holding NV, you can compare the effects of market volatilities on Spire Global and Sif Holding 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 Sif Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Sif Holding.
Diversification Opportunities for Spire Global and Sif Holding
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Spire and Sif is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Sif Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sif Holding NV 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 Sif Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sif Holding NV has no effect on the direction of Spire Global i.e., Spire Global and Sif Holding go up and down completely randomly.
Pair Corralation between Spire Global and Sif Holding
Given the investment horizon of 90 days Spire Global is expected to generate 2.93 times more return on investment than Sif Holding. However, Spire Global is 2.93 times more volatile than Sif Holding NV. It trades about 0.05 of its potential returns per unit of risk. Sif Holding NV is currently generating about 0.02 per unit of risk. If you would invest 824.00 in Spire Global on September 12, 2024 and sell it today you would earn a total of 566.50 from holding Spire Global or generate 68.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.02% |
| Values | Daily Returns |
Spire Global vs. Sif Holding NV
Performance |
| Timeline |
| Spire Global |
| Sif Holding NV |
Spire Global and Sif Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Sif Holding
The main advantage of trading using opposite Spire Global and Sif Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Sif Holding 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 Sif Holding will offset losses from the drop in Sif Holding's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| Sif Holding vs. Kendrion NV | Sif Holding vs. NV Nederlandsche Apparatenfabriek | Sif Holding vs. Brunel International NV | Sif Holding vs. TKH Group NV |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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