Correlation Between SPENN Technology and American Premium
Can any of the company-specific risk be diversified away by investing in both SPENN Technology and American Premium 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 American Premium 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 American Premium Water, you can compare the effects of market volatilities on SPENN Technology and American Premium 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 American Premium. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPENN Technology and American Premium.
Diversification Opportunities for SPENN Technology and American Premium
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPENN and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPENN Technology AS and American Premium Water in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Premium Water 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 American Premium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Premium Water has no effect on the direction of SPENN Technology i.e., SPENN Technology and American Premium go up and down completely randomly.
Pair Corralation between SPENN Technology and American Premium
Assuming the 90 days horizon SPENN Technology AS is expected to under-perform the American Premium. But the pink sheet apears to be less risky and, when comparing its historical volatility, SPENN Technology AS is 69.51 times less risky than American Premium. The pink sheet trades about -0.06 of its potential returns per unit of risk. The American Premium Water is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 0.00 in American Premium Water on September 1, 2024 and sell it today you would earn a total of 0.00 from holding American Premium Water or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 83.33% |
| Values | Daily Returns |
SPENN Technology AS vs. American Premium Water
Performance |
| Timeline |
| SPENN Technology |
| American Premium Water |
SPENN Technology and American Premium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPENN Technology and American Premium
The main advantage of trading using opposite SPENN Technology and American Premium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPENN Technology position performs unexpectedly, American Premium 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 American Premium will offset losses from the drop in American Premium's long position.| SPENN Technology vs. Legacy Education | SPENN Technology vs. Apple Inc | SPENN Technology vs. NVIDIA | SPENN Technology vs. Microsoft |
| American Premium vs. First Tractor | American Premium vs. Ag Growth International | American Premium vs. AmeraMex International | American Premium vs. Arts Way Manufacturing Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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