Correlation Between Spire Global and Bank of Greece
Can any of the company-specific risk be diversified away by investing in both Spire Global and Bank of Greece 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 of Greece 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 of Greece, you can compare the effects of market volatilities on Spire Global and Bank of Greece 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 of Greece. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Bank of Greece.
Diversification Opportunities for Spire Global and Bank of Greece
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Spire and Bank is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Bank of Greece in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Greece 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 of Greece. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Greece has no effect on the direction of Spire Global i.e., Spire Global and Bank of Greece go up and down completely randomly.
Pair Corralation between Spire Global and Bank of Greece
Given the investment horizon of 90 days Spire Global is expected to under-perform the Bank of Greece. In addition to that, Spire Global is 7.73 times more volatile than Bank of Greece. It trades about -0.01 of its total potential returns per unit of risk. Bank of Greece is currently generating about 0.17 per unit of volatility. If you would invest 1,320 in Bank of Greece on December 2, 2024 and sell it today you would earn a total of 145.00 from holding Bank of Greece or generate 10.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Spire Global vs. Bank of Greece
Performance |
Timeline |
Spire Global |
Bank of Greece |
Spire Global and Bank of Greece Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Spire Global and Bank of Greece
The main advantage of trading using opposite Spire Global and Bank of Greece positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global position performs unexpectedly, Bank of Greece 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 of Greece will offset losses from the drop in Bank of Greece's long position.Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Network 1 Technologies |
Bank of Greece vs. Interlife General Insurance | Bank of Greece vs. Piraeus Financial Holdings | Bank of Greece vs. Sidma SA Steel | Bank of Greece vs. Elvalhalcor Hellenic Copper |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |