Correlation Between Spire Global and Weitz Balanced

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

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

Diversification Opportunities for Spire Global and Weitz Balanced

0.56

Correlation Coefficient

Spire Global  Weitz Balanced

Very weak diversification

The 3 months correlation between Spire and Weitz is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Weitz Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weitz Balanced 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 Weitz Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weitz Balanced has no effect on the direction of Spire Global i.e., Spire Global and Weitz Balanced go up and down completely randomly.

Pair Corralation between Spire Global and Weitz Balanced

Given the investment horizon of 90 days Spire Global is expected to under-perform the Weitz Balanced. In addition to that, Spire Global is 24.66 times more volatile than Weitz Balanced. It trades about -0.05 of its total potential returns per unit of risk. Weitz Balanced is currently generating about 0.0 per unit of volatility. If you would invest  1,689  in Weitz Balanced on December 28, 2024 and sell it today you would earn a total of  1.00  from holding Weitz Balanced or generate 0.06% return on investment over 90 days.

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

Spire Global  vs.  Weitz Balanced

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.

Weitz Balanced

Risk-Adjusted Performance

Very Weak

Over the last 90 days Weitz Balanced has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Weitz Balanced is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Spire Global and Weitz Balanced

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

The idea behind Spire Global and Weitz Balanced 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.