Correlation Between Spire and Georgia Power
Can any of the company-specific risk be diversified away by investing in both Spire and Georgia Power 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 and Georgia Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Inc and Georgia Power Co, you can compare the effects of market volatilities on Spire and Georgia Power 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 with a short position of Georgia Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire and Georgia Power.
Diversification Opportunities for Spire and Georgia Power
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spire and Georgia is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Spire Inc and Georgia Power Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Georgia Power and Spire 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 Inc are associated (or correlated) with Georgia Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Georgia Power has no effect on the direction of Spire i.e., Spire and Georgia Power go up and down completely randomly.
Pair Corralation between Spire and Georgia Power
Allowing for the 90-day total investment horizon Spire Inc is expected to generate 1.02 times more return on investment than Georgia Power. However, Spire is 1.02 times more volatile than Georgia Power Co. It trades about 0.18 of its potential returns per unit of risk. Georgia Power Co is currently generating about 0.14 per unit of risk. If you would invest 6,665 in Spire Inc on October 22, 2024 and sell it today you would earn a total of 295.00 from holding Spire Inc or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Inc vs. Georgia Power Co
Performance |
| Timeline |
| Spire Inc |
| Georgia Power |
Spire and Georgia Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire and Georgia Power
The main advantage of trading using opposite Spire and Georgia Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire position performs unexpectedly, Georgia Power 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 Georgia Power will offset losses from the drop in Georgia Power's long position.| Spire vs. Northwest Natural Gas | Spire vs. Chesapeake Utilities | Spire vs. One Gas | Spire vs. NewJersey Resources |
| Georgia Power vs. Southern Co | Georgia Power vs. Entergy Arkansas LLC | Georgia Power vs. DTE Energy Co | Georgia Power vs. Entergy New Orleans |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |