Correlation Between Spire Healthcare and InterContinental
Can any of the company-specific risk be diversified away by investing in both Spire Healthcare and InterContinental 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 InterContinental 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 InterContinental Hotels Group, you can compare the effects of market volatilities on Spire Healthcare and InterContinental 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 InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Healthcare and InterContinental.
Diversification Opportunities for Spire Healthcare and InterContinental
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Spire and InterContinental is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Spire Healthcare Group and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels 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 InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of Spire Healthcare i.e., Spire Healthcare and InterContinental go up and down completely randomly.
Pair Corralation between Spire Healthcare and InterContinental
Assuming the 90 days trading horizon Spire Healthcare Group is expected to generate 0.97 times more return on investment than InterContinental. However, Spire Healthcare Group is 1.03 times less risky than InterContinental. It trades about 0.24 of its potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.13 per unit of risk. If you would invest 18,284 in Spire Healthcare Group on April 24, 2025 and sell it today you would earn a total of 4,216 from holding Spire Healthcare Group or generate 23.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Spire Healthcare Group vs. InterContinental Hotels Group
Performance |
Timeline |
Spire Healthcare |
InterContinental Hotels |
Spire Healthcare and InterContinental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Spire Healthcare and InterContinental
The main advantage of trading using opposite Spire Healthcare and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Healthcare position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental's long position.Spire Healthcare vs. China Pacific Insurance | Spire Healthcare vs. Applied Materials | Spire Healthcare vs. Hochschild Mining plc | Spire Healthcare vs. Check Point Software |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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