Correlation Between Spire Healthcare and Bigblu Broadband

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

By analyzing existing cross correlation between Spire Healthcare Group and Bigblu Broadband PLC, you can compare the effects of market volatilities on Spire Healthcare and Bigblu Broadband 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 Healthcare with a short position of Bigblu Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Healthcare and Bigblu Broadband.

Diversification Opportunities for Spire Healthcare and Bigblu Broadband

-0.81

Correlation Coefficient

Spire Healthcare  Bigblu Broadband

Pay attention - limited upside

The 3 months correlation between Spire and Bigblu is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Spire Healthcare Group and Bigblu Broadband PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bigblu Broadband PLC and Spire Healthcare 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 Healthcare Group are associated (or correlated) with Bigblu Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bigblu Broadband PLC has no effect on the direction of Spire Healthcare i.e., Spire Healthcare and Bigblu Broadband go up and down completely randomly.

Pair Corralation between Spire Healthcare and Bigblu Broadband

Assuming the 90 days trading horizon Spire Healthcare Group is expected to generate 0.52 times more return on investment than Bigblu Broadband. However, Spire Healthcare Group is 1.92 times less risky than Bigblu Broadband. It trades about 0.22 of its potential returns per unit of risk. Bigblu Broadband PLC is currently generating about -0.02 per unit of risk. If you would invest  19,727  in Spire Healthcare Group on April 20, 2025 and sell it today you would earn a total of  2,773  from holding Spire Healthcare Group or generate 14.06% return on investment over 90 days.

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

Spire Healthcare Group  vs.  Bigblu Broadband PLC

Spire Healthcare

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Spire Healthcare Group are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Spire Healthcare exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bigblu Broadband PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bigblu Broadband PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Spire Healthcare and Bigblu Broadband

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

The idea behind Spire Healthcare Group and Bigblu Broadband PLC 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.

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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.