Correlation Between Spire Global and Valic Company

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

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

Diversification Opportunities for Spire Global and Valic Company

-0.58

Correlation Coefficient

Spire Global  Valic Company

Excellent diversification

The 3 months correlation between Spire and Valic is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Valic Company I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valic Company I 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 Valic Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valic Company I has no effect on the direction of Spire Global i.e., Spire Global and Valic Company go up and down completely randomly.

Pair Corralation between Spire Global and Valic Company

Given the investment horizon of 90 days Spire Global is expected to under-perform the Valic Company. In addition to that, Spire Global is 27.89 times more volatile than Valic Company I. It trades about -0.05 of its total potential returns per unit of risk. Valic Company I is currently generating about 0.1 per unit of volatility. If you would invest  945.00  in Valic Company I on December 28, 2024 and sell it today you would earn a total of  18.00  from holding Valic Company I or generate 1.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Spire Global  vs.  Valic Company I

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.

Valic Company I

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Valic Company I are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Valic Company is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Spire Global and Valic Company

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

The idea behind Spire Global and Valic Company I 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.