Correlation Between Spire Global and Surge Battery

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

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

Diversification Opportunities for Spire Global and Surge Battery

0.0

Correlation Coefficient

Spire Global  Surge Battery

Pay attention - limited upside

The 3 months correlation between Spire and Surge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Surge Battery Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surge Battery Metals 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 Surge Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surge Battery Metals has no effect on the direction of Spire Global i.e., Spire Global and Surge Battery go up and down completely randomly.

Pair Corralation between Spire Global and Surge Battery

Given the investment horizon of 90 days Spire Global is expected to under-perform the Surge Battery. In addition to that, Spire Global is 2.22 times more volatile than Surge Battery Metals. It trades about -0.05 of its total potential returns per unit of risk. Surge Battery Metals is currently generating about 0.04 per unit of volatility. If you would invest  36.00  in Surge Battery Metals on December 28, 2024 and sell it today you would earn a total of  2.00  from holding Surge Battery Metals or generate 5.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

Spire Global  vs.  Surge Battery Metals

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.

Surge Battery Metals

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Surge Battery Metals are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Surge Battery may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Spire Global and Surge Battery

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

The idea behind Spire Global and Surge Battery Metals 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 CEOs Directory module to screen CEOs from public companies around the world.