Correlation Between SPENN Technology and Close Brothers

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Can any of the company-specific risk be diversified away by investing in both SPENN Technology and Close Brothers 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 SPENN Technology and Close Brothers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPENN Technology AS and Close Brothers Group, you can compare the effects of market volatilities on SPENN Technology and Close Brothers 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 SPENN Technology with a short position of Close Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPENN Technology and Close Brothers.

Diversification Opportunities for SPENN Technology and Close Brothers

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between SPENN and Close is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPENN Technology AS and Close Brothers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Close Brothers Group and SPENN Technology 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 SPENN Technology AS are associated (or correlated) with Close Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Close Brothers Group has no effect on the direction of SPENN Technology i.e., SPENN Technology and Close Brothers go up and down completely randomly.

Pair Corralation between SPENN Technology and Close Brothers

If you would invest  61.00  in SPENN Technology AS on September 14, 2024 and sell it today you would earn a total of  0.00  from holding SPENN Technology AS or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy99.6%
ValuesDaily Returns

SPENN Technology AS  vs.  Close Brothers Group

 Performance 
       Timeline  
SPENN Technology 

Risk-Adjusted Performance

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Over the last 90 days SPENN Technology AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SPENN Technology is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Close Brothers Group 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Close Brothers Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

SPENN Technology and Close Brothers Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SPENN Technology and Close Brothers

The main advantage of trading using opposite SPENN Technology and Close Brothers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPENN Technology position performs unexpectedly, Close Brothers 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 Close Brothers will offset losses from the drop in Close Brothers' long position.
The idea behind SPENN Technology AS and Close Brothers Group 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 Commodity Directory module to find actively traded commodities issued by global exchanges.

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