Correlation Between Spirent Communications and Bitdeer Technologies
Can any of the company-specific risk be diversified away by investing in both Spirent Communications and Bitdeer Technologies 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 Spirent Communications and Bitdeer Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spirent Communications plc and Bitdeer Technologies Group, you can compare the effects of market volatilities on Spirent Communications and Bitdeer Technologies 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 Spirent Communications with a short position of Bitdeer Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spirent Communications and Bitdeer Technologies.
Diversification Opportunities for Spirent Communications and Bitdeer Technologies
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Spirent and Bitdeer is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Spirent Communications plc and Bitdeer Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitdeer Technologies and Spirent Communications 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 Spirent Communications plc are associated (or correlated) with Bitdeer Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitdeer Technologies has no effect on the direction of Spirent Communications i.e., Spirent Communications and Bitdeer Technologies go up and down completely randomly.
Pair Corralation between Spirent Communications and Bitdeer Technologies
Assuming the 90 days horizon Spirent Communications is expected to generate 16.56 times less return on investment than Bitdeer Technologies. But when comparing it to its historical volatility, Spirent Communications plc is 15.12 times less risky than Bitdeer Technologies. It trades about 0.01 of its potential returns per unit of risk. Bitdeer Technologies Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,429 in Bitdeer Technologies Group on August 29, 2025 and sell it today you would lose (162.00) from holding Bitdeer Technologies Group or give up 11.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spirent Communications plc vs. Bitdeer Technologies Group
Performance |
| Timeline |
| Spirent Communications |
| Bitdeer Technologies |
Spirent Communications and Bitdeer Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spirent Communications and Bitdeer Technologies
The main advantage of trading using opposite Spirent Communications and Bitdeer Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spirent Communications position performs unexpectedly, Bitdeer Technologies 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 Bitdeer Technologies will offset losses from the drop in Bitdeer Technologies' long position.| Spirent Communications vs. Microsoft | Spirent Communications vs. Oracle | Spirent Communications vs. Palantir Technologies | Spirent Communications vs. Adobe Systems Incorporated |
| Bitdeer Technologies vs. Elmos Semiconductor SE | Bitdeer Technologies vs. Tower Semiconductor | Bitdeer Technologies vs. Lattice Semiconductor | Bitdeer Technologies vs. Lifeway Foods |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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