Correlation Between Trimble and Spectris Plc
Can any of the company-specific risk be diversified away by investing in both Trimble and Spectris Plc 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 Trimble and Spectris Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trimble and Spectris plc, you can compare the effects of market volatilities on Trimble and Spectris Plc 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 Trimble with a short position of Spectris Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimble and Spectris Plc.
Diversification Opportunities for Trimble and Spectris Plc
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Trimble and Spectris is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Trimble and Spectris plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectris plc and Trimble 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 Trimble are associated (or correlated) with Spectris Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectris plc has no effect on the direction of Trimble i.e., Trimble and Spectris Plc go up and down completely randomly.
Pair Corralation between Trimble and Spectris Plc
Given the investment horizon of 90 days Trimble is expected to generate 6.36 times less return on investment than Spectris Plc. But when comparing it to its historical volatility, Trimble is 5.63 times less risky than Spectris Plc. It trades about 0.16 of its potential returns per unit of risk. Spectris plc is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,713 in Spectris plc on June 4, 2025 and sell it today you would earn a total of 2,582 from holding Spectris plc or generate 95.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Trimble vs. Spectris plc
Performance |
| Timeline |
| Trimble |
| Spectris plc |
Trimble and Spectris Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trimble and Spectris Plc
The main advantage of trading using opposite Trimble and Spectris Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimble position performs unexpectedly, Spectris Plc 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 Spectris Plc will offset losses from the drop in Spectris Plc's long position.| Trimble vs. Teledyne Technologies Incorporated | Trimble vs. Fortive Corp | Trimble vs. MKS Instruments | Trimble vs. Cognex |
| Spectris Plc vs. Keyence | Spectris Plc vs. Garmin | Spectris Plc vs. Hexagon AB ADR | Spectris Plc vs. Hexagon AB |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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