Correlation Between SPENN Technology and Bitcoin Well

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

Diversification Opportunities for SPENN Technology and Bitcoin Well

0.0

Correlation Coefficient

SPENN Technology  Bitcoin Well

Pay attention - limited upside

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

Pair Corralation between SPENN Technology and Bitcoin Well

If you would invest  5.86  in Bitcoin Well on September 3, 2024 and sell it today you would earn a total of  10.14  from holding Bitcoin Well or generate 173.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

SPENN Technology AS  vs.  Bitcoin Well

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.

Bitcoin Well

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Well are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Bitcoin Well reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SPENN Technology and Bitcoin Well

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

The idea behind SPENN Technology AS and Bitcoin Well 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.