Correlation Between Spire Global and Catalyst/map Global
Can any of the company-specific risk be diversified away by investing in both Spire Global and Catalyst/map Global 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 Catalyst/map Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Catalystmap Global Balanced, you can compare the effects of market volatilities on Spire Global and Catalyst/map Global 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 Catalyst/map Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Catalyst/map Global.
Diversification Opportunities for Spire Global and Catalyst/map Global
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spire and Catalyst/map is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Catalystmap Global Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/map Global 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 Catalyst/map Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/map Global has no effect on the direction of Spire Global i.e., Spire Global and Catalyst/map Global go up and down completely randomly.
Pair Corralation between Spire Global and Catalyst/map Global
Given the investment horizon of 90 days Spire Global is expected to generate 19.46 times more return on investment than Catalyst/map Global. However, Spire Global is 19.46 times more volatile than Catalystmap Global Balanced. It trades about 0.3 of its potential returns per unit of risk. Catalystmap Global Balanced is currently generating about 0.06 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Global vs. Catalystmap Global Balanced
Performance |
| Timeline |
| Spire Global |
| Catalyst/map Global |
Spire Global and Catalyst/map Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Catalyst/map Global
The main advantage of trading using opposite Spire Global and Catalyst/map Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Catalyst/map Global 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 Catalyst/map Global will offset losses from the drop in Catalyst/map Global's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| Catalyst/map Global vs. Catalystsmh High Income | Catalyst/map Global vs. Catalystsmh High Income | Catalyst/map Global vs. Catalystsmh High Income | Catalyst/map Global vs. Catalyst Mlp Infrastructure |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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