Correlation Between Spirent Communications and Logansport Financial
Can any of the company-specific risk be diversified away by investing in both Spirent Communications and Logansport Financial 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 Logansport Financial 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 Logansport Financial Corp, you can compare the effects of market volatilities on Spirent Communications and Logansport Financial 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 Logansport Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spirent Communications and Logansport Financial.
Diversification Opportunities for Spirent Communications and Logansport Financial
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Spirent and Logansport is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Spirent Communications plc and Logansport Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logansport Financial Corp 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 Logansport Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logansport Financial Corp has no effect on the direction of Spirent Communications i.e., Spirent Communications and Logansport Financial go up and down completely randomly.
Pair Corralation between Spirent Communications and Logansport Financial
Assuming the 90 days horizon Spirent Communications is expected to generate 21.81 times less return on investment than Logansport Financial. But when comparing it to its historical volatility, Spirent Communications plc is 2.8 times less risky than Logansport Financial. It trades about 0.01 of its potential returns per unit of risk. Logansport Financial Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,955 in Logansport Financial Corp on September 4, 2025 and sell it today you would earn a total of 280.00 from holding Logansport Financial Corp or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.83% |
| Values | Daily Returns |
Spirent Communications plc vs. Logansport Financial Corp
Performance |
| Timeline |
| Spirent Communications |
| Logansport Financial Corp |
Spirent Communications and Logansport Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spirent Communications and Logansport Financial
The main advantage of trading using opposite Spirent Communications and Logansport Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spirent Communications position performs unexpectedly, Logansport Financial 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 Logansport Financial will offset losses from the drop in Logansport Financial's long position.| Spirent Communications vs. Microsoft | Spirent Communications vs. Oracle | Spirent Communications vs. Palantir Technologies | Spirent Communications vs. Adobe Systems Incorporated |
| Logansport Financial vs. GOME Retail Holdings | Logansport Financial vs. Harmony Gold Mining | Logansport Financial vs. Corazon Mining | Logansport Financial vs. Sun Art Retail |
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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