Correlation Between Spire Global and Shyft
Can any of the company-specific risk be diversified away by investing in both Spire Global and Shyft 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 Shyft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and The Shyft Group, you can compare the effects of market volatilities on Spire Global and Shyft 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 Shyft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Shyft.
Diversification Opportunities for Spire Global and Shyft
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spire and Shyft is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and The Shyft Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shyft 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 Shyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shyft Group has no effect on the direction of Spire Global i.e., Spire Global and Shyft go up and down completely randomly.
Pair Corralation between Spire Global and Shyft
Given the investment horizon of 90 days Spire Global is expected to generate 1.48 times more return on investment than Shyft. However, Spire Global is 1.48 times more volatile than The Shyft Group. It trades about 0.1 of its potential returns per unit of risk. The Shyft Group is currently generating about 0.06 per unit of risk. If you would invest 1,017 in Spire Global on September 3, 2024 and sell it today you would earn a total of 617.00 from holding Spire Global or generate 60.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.9% |
| Values | Daily Returns |
Spire Global vs. The Shyft Group
Performance |
| Timeline |
| Spire Global |
| Shyft Group |
Spire Global and Shyft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Shyft
The main advantage of trading using opposite Spire Global and Shyft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Shyft 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 Shyft will offset losses from the drop in Shyft's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| Shyft vs. Hyster Yale Materials Handling | Shyft vs. Superior Plus Corp | Shyft vs. NMI Holdings | Shyft vs. Origin Agritech |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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