Correlation Between Spire and Utilities Fund
Can any of the company-specific risk be diversified away by investing in both Spire and Utilities Fund 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 Utilities Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Inc and Utilities Fund Class, you can compare the effects of market volatilities on Spire and Utilities Fund 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 Utilities Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire and Utilities Fund.
Diversification Opportunities for Spire and Utilities Fund
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Spire and Utilities is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Spire Inc and Utilities Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utilities Fund Class 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 Utilities Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utilities Fund Class has no effect on the direction of Spire i.e., Spire and Utilities Fund go up and down completely randomly.
Pair Corralation between Spire and Utilities Fund
Allowing for the 90-day total investment horizon Spire Inc is expected to generate 1.42 times more return on investment than Utilities Fund. However, Spire is 1.42 times more volatile than Utilities Fund Class. It trades about 0.08 of its potential returns per unit of risk. Utilities Fund Class is currently generating about 0.03 per unit of risk. If you would invest 6,501 in Spire Inc on September 12, 2024 and sell it today you would earn a total of 407.00 from holding Spire Inc or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Inc vs. Utilities Fund Class
Performance |
| Timeline |
| Spire Inc |
| Utilities Fund Class |
Spire and Utilities Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire and Utilities Fund
The main advantage of trading using opposite Spire and Utilities Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire position performs unexpectedly, Utilities Fund 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 Utilities Fund will offset losses from the drop in Utilities Fund's long position.| Spire vs. Northwest Natural Gas | Spire vs. Chesapeake Utilities | Spire vs. One Gas | Spire vs. NewJersey Resources |
| Utilities Fund vs. Allianzgi Health Sciences | Utilities Fund vs. Live Oak Health | Utilities Fund vs. Deutsche Health And | Utilities Fund vs. Health Biotchnology Portfolio |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |