Correlation Between Spire Global and Trias Sentosa
Can any of the company-specific risk be diversified away by investing in both Spire Global and Trias Sentosa 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 Trias Sentosa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Trias Sentosa Tbk, you can compare the effects of market volatilities on Spire Global and Trias Sentosa 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 Trias Sentosa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Trias Sentosa.
Diversification Opportunities for Spire Global and Trias Sentosa
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Spire and Trias is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Trias Sentosa Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trias Sentosa Tbk 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 Trias Sentosa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trias Sentosa Tbk has no effect on the direction of Spire Global i.e., Spire Global and Trias Sentosa go up and down completely randomly.
Pair Corralation between Spire Global and Trias Sentosa
Given the investment horizon of 90 days Spire Global is expected to generate 2.89 times more return on investment than Trias Sentosa. However, Spire Global is 2.89 times more volatile than Trias Sentosa Tbk. It trades about 0.25 of its potential returns per unit of risk. Trias Sentosa Tbk is currently generating about -0.01 per unit of risk. If you would invest 801.00 in Spire Global on September 6, 2024 and sell it today you would earn a total of 697.00 from holding Spire Global or generate 87.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Spire Global vs. Trias Sentosa Tbk
Performance |
Timeline |
Spire Global |
Trias Sentosa Tbk |
Spire Global and Trias Sentosa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Spire Global and Trias Sentosa
The main advantage of trading using opposite Spire Global and Trias Sentosa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Trias Sentosa 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 Trias Sentosa will offset losses from the drop in Trias Sentosa's long position.Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
Trias Sentosa vs. Suparma Tbk | Trias Sentosa vs. Champion Pacific Indonesia | Trias Sentosa vs. Indo Acidatama Tbk | Trias Sentosa vs. Unggul Indah Cahaya |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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