Correlation Between SoftBank Group and Spire Healthcare
Can any of the company-specific risk be diversified away by investing in both SoftBank Group and Spire Healthcare 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 SoftBank Group and Spire Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoftBank Group Corp and Spire Healthcare Group, you can compare the effects of market volatilities on SoftBank Group and Spire Healthcare 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 SoftBank Group with a short position of Spire Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoftBank Group and Spire Healthcare.
Diversification Opportunities for SoftBank Group and Spire Healthcare
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SoftBank and Spire is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding SoftBank Group Corp and Spire Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spire Healthcare and SoftBank Group 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 SoftBank Group Corp are associated (or correlated) with Spire Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spire Healthcare has no effect on the direction of SoftBank Group i.e., SoftBank Group and Spire Healthcare go up and down completely randomly.
Pair Corralation between SoftBank Group and Spire Healthcare
Assuming the 90 days trading horizon SoftBank Group Corp is expected to generate 2.47 times more return on investment than Spire Healthcare. However, SoftBank Group is 2.47 times more volatile than Spire Healthcare Group. It trades about 0.13 of its potential returns per unit of risk. Spire Healthcare Group is currently generating about 0.02 per unit of risk. If you would invest 1,628,097 in SoftBank Group Corp on August 17, 2025 and sell it today you would earn a total of 339,903 from holding SoftBank Group Corp or generate 20.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 48.44% |
| Values | Daily Returns |
SoftBank Group Corp vs. Spire Healthcare Group
Performance |
| Timeline |
| SoftBank Group Corp |
| Spire Healthcare |
SoftBank Group and Spire Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoftBank Group and Spire Healthcare
The main advantage of trading using opposite SoftBank Group and Spire Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoftBank Group position performs unexpectedly, Spire Healthcare 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 Healthcare will offset losses from the drop in Spire Healthcare's long position.| SoftBank Group vs. Toyota Motor Corp | SoftBank Group vs. Nintendo Co | SoftBank Group vs. Fannie Mae | SoftBank Group vs. Cheniere Energy |
| Spire Healthcare vs. Atalaya Mining | Spire Healthcare vs. Coeur Mining | Spire Healthcare vs. Blackrock World Mining | Spire Healthcare vs. Hecla Mining Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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