Correlation Between Spring Valley and Global Crossing

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

By analyzing existing cross correlation between Spring Valley Acquisition and Global Crossing Airlines, you can compare the effects of market volatilities on Spring Valley and Global Crossing 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 Spring Valley with a short position of Global Crossing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spring Valley and Global Crossing.

Diversification Opportunities for Spring Valley and Global Crossing

-0.36

Correlation Coefficient

Spring Valley  Global Crossing

Very good diversification

The 3 months correlation between Spring and Global is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Spring Valley Acquisition and Global Crossing Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Crossing Airlines and Spring Valley 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 Spring Valley Acquisition are associated (or correlated) with Global Crossing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Crossing Airlines has no effect on the direction of Spring Valley i.e., Spring Valley and Global Crossing go up and down completely randomly.

Pair Corralation between Spring Valley and Global Crossing

Assuming the 90 days horizon Spring Valley Acquisition is expected to generate 5.62 times more return on investment than Global Crossing. However, Spring Valley is 5.62 times more volatile than Global Crossing Airlines. It trades about 0.22 of its potential returns per unit of risk. Global Crossing Airlines is currently generating about -0.04 per unit of risk. If you would invest  9.95  in Spring Valley Acquisition on May 15, 2025 and sell it today you would earn a total of  23.80  from holding Spring Valley Acquisition or generate 239.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	80.33%
Values	Daily Returns

Spring Valley Acquisition  vs.  Global Crossing Airlines

Spring Valley Acquisition

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Spring Valley Acquisition are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile forward indicators, Spring Valley reported solid returns over the last few months and may actually be approaching a breakup point.

Global Crossing Airlines

Risk-Adjusted Performance

Weakest

Over the last 90 days Global Crossing Airlines has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's primary indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Spring Valley and Global Crossing

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

The idea behind Spring Valley Acquisition and Global Crossing Airlines 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.

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.