Correlation Between SPENN Technology and Grayscale Bitcoin

Can any of the company-specific risk be diversified away by investing in both SPENN Technology and Grayscale Bitcoin 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 Grayscale Bitcoin 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 Grayscale Bitcoin Cash, you can compare the effects of market volatilities on SPENN Technology and Grayscale Bitcoin 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 Grayscale Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPENN Technology and Grayscale Bitcoin.

Diversification Opportunities for SPENN Technology and Grayscale Bitcoin

0.0

Correlation Coefficient

SPENN Technology  Grayscale Bitcoin

Pay attention - limited upside

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

Pair Corralation between SPENN Technology and Grayscale Bitcoin

If you would invest  61.00  in SPENN Technology AS on October 20, 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 Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.38%
Values	Daily Returns

SPENN Technology AS  vs.  Grayscale Bitcoin Cash

SPENN Technology

Risk-Adjusted Performance

0 of 100

Very Weak

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 newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Grayscale Bitcoin Cash

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grayscale Bitcoin Cash has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with SPENN Technology and Grayscale Bitcoin

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

The idea behind SPENN Technology AS and Grayscale Bitcoin Cash 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..