Correlation Between One Step and SPO Global

Can any of the company-specific risk be diversified away by investing in both One Step and SPO Global 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 One Step and SPO Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between One Step Vending and SPO Global, you can compare the effects of market volatilities on One Step and SPO Global 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 One Step with a short position of SPO Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Step and SPO Global.

Diversification Opportunities for One Step and SPO Global

-0.33

Correlation Coefficient

One Step  SPO Global

Very good diversification

The 3 months correlation between One and SPO is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding One Step Vending and SPO Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPO Global and One Step 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 One Step Vending are associated (or correlated) with SPO Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPO Global has no effect on the direction of One Step i.e., One Step and SPO Global go up and down completely randomly.

Pair Corralation between One Step and SPO Global

Given the investment horizon of 90 days One Step is expected to generate 3.99 times less return on investment than SPO Global. In addition to that, One Step is 1.51 times more volatile than SPO Global. It trades about 0.01 of its total potential returns per unit of risk. SPO Global is currently generating about 0.07 per unit of volatility. If you would invest  0.07  in SPO Global on June 14, 2025 and sell it today you would earn a total of  0.01  from holding SPO Global or generate 14.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

One Step Vending  vs.  SPO Global

One Step Vending

Risk-Adjusted Performance

Weakest

Over the last 90 days One Step Vending has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite fragile basic indicators, One Step may actually be approaching a critical reversion point that can send shares even higher in October 2025.

SPO Global

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in SPO Global are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, SPO Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with One Step and SPO Global

The main advantage of trading using opposite One Step and SPO Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Step position performs unexpectedly, SPO Global 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 SPO Global will offset losses from the drop in SPO Global's long position.

The idea behind One Step Vending and SPO Global 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.