Correlation Between Maximus and Spire Global

Can any of the company-specific risk be diversified away by investing in both Maximus and Spire Global 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 Maximus and Spire Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Maximus and Spire Global, you can compare the effects of market volatilities on Maximus and Spire Global 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 Maximus with a short position of Spire Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maximus and Spire Global.

Diversification Opportunities for Maximus and Spire Global

0.68

Correlation Coefficient

Maximus  Spire Global

Poor diversification

The 3 months correlation between Maximus and Spire is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Maximus and Spire Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spire Global and Maximus 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 Maximus are associated (or correlated) with Spire Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spire Global has no effect on the direction of Maximus i.e., Maximus and Spire Global go up and down completely randomly.

Pair Corralation between Maximus and Spire Global

Considering the 90-day investment horizon Maximus is expected to generate 0.22 times more return on investment than Spire Global. However, Maximus is 4.62 times less risky than Spire Global. It trades about -0.06 of its potential returns per unit of risk. Spire Global is currently generating about -0.05 per unit of risk. If you would invest  7,390  in Maximus on December 28, 2024 and sell it today you would lose (580.00) from holding Maximus or give up 7.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Maximus  vs.  Spire Global

Maximus

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maximus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's primary indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Spire Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Spire Global has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Maximus and Spire Global

The main advantage of trading using opposite Maximus and Spire Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maximus position performs unexpectedly, Spire Global 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 Spire Global will offset losses from the drop in Spire Global's long position.

The idea behind Maximus and Spire Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .