Correlation Between Unifirst and Spire Global

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Can any of the company-specific risk be diversified away by investing in both Unifirst and Spire Global 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 Unifirst and Spire Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unifirst and Spire Global, you can compare the effects of market volatilities on Unifirst and Spire Global 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 Unifirst with a short position of Spire Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unifirst and Spire Global.

Diversification Opportunities for Unifirst and Spire Global

UnifirstSpireDiversified AwayUnifirstSpireDiversified Away100%
0.42
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Unifirst and Spire is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Unifirst and Spire Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spire Global and Unifirst 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 Unifirst are associated (or correlated) with Spire Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spire Global has no effect on the direction of Unifirst i.e., Unifirst and Spire Global go up and down completely randomly.

Pair Corralation between Unifirst and Spire Global

Considering the 90-day investment horizon Unifirst is expected to generate 0.13 times more return on investment than Spire Global. However, Unifirst is 7.6 times less risky than Spire Global. It trades about -0.13 of its potential returns per unit of risk. Spire Global is currently generating about -0.13 per unit of risk. If you would invest  22,028  in Unifirst on November 25, 2024 and sell it today you would lose (999.00) from holding Unifirst or give up 4.54% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Unifirst  vs.  Spire Global

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20020406080
JavaScript chart by amCharts 3.21.15UNF SPIR
       Timeline  
Unifirst 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Unifirst are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Unifirst is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb170180190200210220230240
Spire Global 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
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 March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb10121416182022

Unifirst and Spire Global Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-9.71-7.28-4.84-2.40.02.414.917.49.912.39 0.0050.0100.0150.0200.0250.0300.0350.040
JavaScript chart by amCharts 3.21.15UNF SPIR
       Returns  

Pair Trading with Unifirst and Spire Global

The main advantage of trading using opposite Unifirst and Spire Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unifirst position performs unexpectedly, Spire Global 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 Spire Global will offset losses from the drop in Spire Global's long position.
The idea behind Unifirst and Spire Global 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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