Correlation Between Spire Global and Rich Sparkle

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

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

Diversification Opportunities for Spire Global and Rich Sparkle

0.11

Correlation Coefficient

Spire Global  Rich Sparkle

Average diversification

The 3 months correlation between Spire and Rich is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Rich Sparkle Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rich Sparkle Holdings and Spire Global 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 Global are associated (or correlated) with Rich Sparkle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rich Sparkle Holdings has no effect on the direction of Spire Global i.e., Spire Global and Rich Sparkle go up and down completely randomly.

Pair Corralation between Spire Global and Rich Sparkle

Given the investment horizon of 90 days Spire Global is expected to under-perform the Rich Sparkle. But the stock apears to be less risky and, when comparing its historical volatility, Spire Global is 1.42 times less risky than Rich Sparkle. The stock trades about -0.06 of its potential returns per unit of risk. The Rich Sparkle Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,720  in Rich Sparkle Holdings on October 8, 2025 and sell it today you would lose (449.00) from holding Rich Sparkle Holdings or give up 16.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Spire Global  vs.  Rich Sparkle Holdings

Spire Global

Risk-Adjusted Performance

Weakest

Over the last 90 days Spire Global has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in February 2026. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Rich Sparkle Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Rich Sparkle Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Rich Sparkle may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Pair Trading with Spire Global and Rich Sparkle

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

The idea behind Spire Global and Rich Sparkle Holdings 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.