Correlation Between Spire Global and SITE Centers
Can any of the company-specific risk be diversified away by investing in both Spire Global and SITE Centers 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 SITE Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and SITE Centers Corp, you can compare the effects of market volatilities on Spire Global and SITE Centers 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 SITE Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and SITE Centers.
Diversification Opportunities for Spire Global and SITE Centers
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spire and SITE is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and SITE Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SITE Centers 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 SITE Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SITE Centers Corp has no effect on the direction of Spire Global i.e., Spire Global and SITE Centers go up and down completely randomly.
Pair Corralation between Spire Global and SITE Centers
Given the investment horizon of 90 days Spire Global is expected to generate 72.84 times more return on investment than SITE Centers. However, Spire Global is 72.84 times more volatile than SITE Centers Corp. It trades about 0.3 of its potential returns per unit of risk. SITE Centers Corp is currently generating about 0.07 per unit of risk. If you would invest 1,091 in Spire Global on September 5, 2024 and sell it today you would earn a total of 386.00 from holding Spire Global or generate 35.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Spire Global vs. SITE Centers Corp
Performance |
| Timeline |
| Spire Global |
| SITE Centers Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Spire Global and SITE Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and SITE Centers
The main advantage of trading using opposite Spire Global and SITE Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, SITE Centers 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 SITE Centers will offset losses from the drop in SITE Centers' long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| SITE Centers vs. The Gabelli Multimedia | SITE Centers vs. The Gabelli Equity | SITE Centers vs. Virtus AllianzGI Convertible | SITE Centers vs. John Hancock Income |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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