Correlation Between Spire Global and Shui On
Can any of the company-specific risk be diversified away by investing in both Spire Global and Shui On 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 Shui On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Shui On Land, you can compare the effects of market volatilities on Spire Global and Shui On 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 Shui On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Shui On.
Diversification Opportunities for Spire Global and Shui On
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spire and Shui is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Shui On Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shui On Land 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 Shui On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shui On Land has no effect on the direction of Spire Global i.e., Spire Global and Shui On go up and down completely randomly.
Pair Corralation between Spire Global and Shui On
Given the investment horizon of 90 days Spire Global is expected to generate 0.19 times more return on investment than Shui On. However, Spire Global is 5.13 times less risky than Shui On. It trades about 0.11 of its potential returns per unit of risk. Shui On Land is currently generating about -0.07 per unit of risk. If you would invest 414.00 in Spire Global on September 4, 2024 and sell it today you would earn a total of 1,143 from holding Spire Global or generate 276.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 3.1% |
| Values | Daily Returns |
Spire Global vs. Shui On Land
Performance |
| Timeline |
| Spire Global |
| Shui On Land |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Spire Global and Shui On Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Shui On
The main advantage of trading using opposite Spire Global and Shui On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Shui On 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 Shui On will offset losses from the drop in Shui On's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| Shui On vs. Sensient Technologies | Shui On vs. MGIC Investment Corp | Shui On vs. CapitaLand Investment Limited | Shui On vs. Guangdong Investment Limited |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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