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
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spire and Bank is -0.5. 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 10.45 times more volatile than Bank of Greece. It trades about -0.05 of its total potential returns per unit of risk. Bank of Greece is currently generating about 0.0 per unit of volatility. If you would invest 1,475 in Bank of Greece on December 28, 2024 and sell it today you would lose (5.00) from holding Bank of Greece or give up 0.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
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. Optronics Technologies SA | Bank of Greece vs. Eurobank Ergasias Services | Bank of Greece vs. Profile Systems Software | 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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