Correlation Between Spire Global and Shengkai Innovations
Can any of the company-specific risk be diversified away by investing in both Spire Global and Shengkai Innovations 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 Shengkai Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Shengkai Innovations, you can compare the effects of market volatilities on Spire Global and Shengkai Innovations 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 Shengkai Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Shengkai Innovations.
Diversification Opportunities for Spire Global and Shengkai Innovations
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spire and Shengkai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Shengkai Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengkai Innovations 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 Shengkai Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengkai Innovations has no effect on the direction of Spire Global i.e., Spire Global and Shengkai Innovations go up and down completely randomly.
Pair Corralation between Spire Global and Shengkai Innovations
If you would invest 523.00 in Spire Global on September 12, 2024 and sell it today you would earn a total of 893.00 from holding Spire Global or generate 170.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.27% |
| Values | Daily Returns |
Spire Global vs. Shengkai Innovations
Performance |
| Timeline |
| Spire Global |
| Shengkai Innovations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Spire Global and Shengkai Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Shengkai Innovations
The main advantage of trading using opposite Spire Global and Shengkai Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Shengkai Innovations 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 Shengkai Innovations will offset losses from the drop in Shengkai Innovations' long position.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| Shengkai Innovations vs. Lion One Metals | Shengkai Innovations vs. Franklin Credit Management | Shengkai Innovations vs. Harmony Gold Mining | Shengkai Innovations vs. Royalty Management Holding |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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