Correlation Between Spire Global and BANK HANDLOWY

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

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

Diversification Opportunities for Spire Global and BANK HANDLOWY

-0.71

Correlation Coefficient

Spire Global  BANK HANDLOWY

Pay attention - limited upside

The 3 months correlation between Spire and BANK is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and BANK HANDLOWY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK HANDLOWY 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 BANK HANDLOWY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK HANDLOWY has no effect on the direction of Spire Global i.e., Spire Global and BANK HANDLOWY go up and down completely randomly.

Pair Corralation between Spire Global and BANK HANDLOWY

Given the investment horizon of 90 days Spire Global is expected to under-perform the BANK HANDLOWY. In addition to that, Spire Global is 8.89 times more volatile than BANK HANDLOWY. It trades about -0.05 of its total potential returns per unit of risk. BANK HANDLOWY is currently generating about 0.53 per unit of volatility. If you would invest  2,070  in BANK HANDLOWY on December 28, 2024 and sell it today you would earn a total of  760.00  from holding BANK HANDLOWY or generate 36.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.77%
Values	Daily Returns

Spire Global  vs.  BANK HANDLOWY

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.

BANK HANDLOWY

Risk-Adjusted Performance

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in BANK HANDLOWY are ranked lower than 41 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, BANK HANDLOWY unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Spire Global and BANK HANDLOWY

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

The idea behind Spire Global and BANK HANDLOWY 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.