Correlation Between Spire Global and CATERPILLAR
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By analyzing existing cross correlation between Spire Global and CATERPILLAR FINANCIAL SERVICES, you can compare the effects of market volatilities on Spire Global and CATERPILLAR 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 CATERPILLAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and CATERPILLAR.
Diversification Opportunities for Spire Global and CATERPILLAR
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spire and CATERPILLAR is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and CATERPILLAR FINANCIAL SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATERPILLAR FINANCIAL 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 CATERPILLAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATERPILLAR FINANCIAL has no effect on the direction of Spire Global i.e., Spire Global and CATERPILLAR go up and down completely randomly.
Pair Corralation between Spire Global and CATERPILLAR
Given the investment horizon of 90 days Spire Global is expected to generate 21.69 times more return on investment than CATERPILLAR. However, Spire Global is 21.69 times more volatile than CATERPILLAR FINANCIAL SERVICES. It trades about 0.11 of its potential returns per unit of risk. CATERPILLAR FINANCIAL SERVICES is currently generating about 0.03 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 | 95.17% |
| Values | Daily Returns |
Spire Global vs. CATERPILLAR FINANCIAL SERVICES
Performance |
| Timeline |
| Spire Global |
| CATERPILLAR FINANCIAL |
Spire Global and CATERPILLAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and CATERPILLAR
The main advantage of trading using opposite Spire Global and CATERPILLAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, CATERPILLAR 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 CATERPILLAR will offset losses from the drop in CATERPILLAR's long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| CATERPILLAR vs. Southwest Gas Holdings | CATERPILLAR vs. Algoma Steel Group | CATERPILLAR vs. Allegheny Technologies Incorporated | CATERPILLAR vs. NRG 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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