Correlation Between Spire Global and Centaur Total
Can any of the company-specific risk be diversified away by investing in both Spire Global and Centaur Total 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 Centaur Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Centaur Total Return, you can compare the effects of market volatilities on Spire Global and Centaur Total 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 Centaur Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Centaur Total.
Diversification Opportunities for Spire Global and Centaur Total
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spire and Centaur is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Centaur Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Total Return 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 Centaur Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Total Return has no effect on the direction of Spire Global i.e., Spire Global and Centaur Total go up and down completely randomly.
Pair Corralation between Spire Global and Centaur Total
If you would invest 1,150 in Spire Global on September 12, 2024 and sell it today you would earn a total of 240.50 from holding Spire Global or generate 20.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Spire Global vs. Centaur Total Return
Performance |
| Timeline |
| Spire Global |
| Centaur Total Return |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Spire Global and Centaur Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Centaur Total
The main advantage of trading using opposite Spire Global and Centaur Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Centaur Total 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 Centaur Total will offset losses from the drop in Centaur Total's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| Centaur Total vs. Clearbridge Energy Mlp | Centaur Total vs. Oil Gas Ultrasector | Centaur Total vs. Calvert Global Energy | Centaur Total vs. Firsthand Alternative Energy |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |