Correlation Between Spire Global and Damai Sejahtera

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

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

Diversification Opportunities for Spire Global and Damai Sejahtera

0.32

Correlation Coefficient

Spire Global  Damai Sejahtera

Weak diversification

The 3 months correlation between Spire and Damai is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Damai Sejahtera Abadi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Damai Sejahtera Abadi 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 Damai Sejahtera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Damai Sejahtera Abadi has no effect on the direction of Spire Global i.e., Spire Global and Damai Sejahtera go up and down completely randomly.

Pair Corralation between Spire Global and Damai Sejahtera

Given the investment horizon of 90 days Spire Global is expected to under-perform the Damai Sejahtera. In addition to that, Spire Global is 2.0 times more volatile than Damai Sejahtera Abadi. It trades about -0.05 of its total potential returns per unit of risk. Damai Sejahtera Abadi is currently generating about -0.03 per unit of volatility. If you would invest  22,000  in Damai Sejahtera Abadi on December 28, 2024 and sell it today you would lose (2,800) from holding Damai Sejahtera Abadi or give up 12.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.72%
Values	Daily Returns

Spire Global  vs.  Damai Sejahtera Abadi

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.

Damai Sejahtera Abadi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Damai Sejahtera Abadi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Spire Global and Damai Sejahtera

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

The idea behind Spire Global and Damai Sejahtera Abadi 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.