Correlation Between Spire and Excelerate Energy
Can any of the company-specific risk be diversified away by investing in both Spire and Excelerate Energy 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 and Excelerate Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Inc and Excelerate Energy, you can compare the effects of market volatilities on Spire and Excelerate Energy 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 with a short position of Excelerate Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire and Excelerate Energy.
Diversification Opportunities for Spire and Excelerate Energy
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spire and Excelerate is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Spire Inc and Excelerate Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelerate Energy and Spire 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 Inc are associated (or correlated) with Excelerate Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelerate Energy has no effect on the direction of Spire i.e., Spire and Excelerate Energy go up and down completely randomly.
Pair Corralation between Spire and Excelerate Energy
Allowing for the 90-day total investment horizon Spire Inc is expected to generate 0.58 times more return on investment than Excelerate Energy. However, Spire Inc is 1.74 times less risky than Excelerate Energy. It trades about 0.24 of its potential returns per unit of risk. Excelerate Energy is currently generating about 0.09 per unit of risk. If you would invest 7,497 in Spire Inc on July 27, 2025 and sell it today you would earn a total of 1,393 from holding Spire Inc or generate 18.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Inc vs. Excelerate Energy
Performance |
| Timeline |
| Spire Inc |
| Excelerate Energy |
Spire and Excelerate Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire and Excelerate Energy
The main advantage of trading using opposite Spire and Excelerate Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire position performs unexpectedly, Excelerate Energy 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 Excelerate Energy will offset losses from the drop in Excelerate Energy's long position.The idea behind Spire Inc and Excelerate Energy 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.| Excelerate Energy vs. Renew Energy Global | Excelerate Energy vs. MGE Energy | Excelerate Energy vs. Avista | Excelerate Energy vs. Otter Tail |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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