Correlation Between SPENN Technology and Halitron

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

Diversification Opportunities for SPENN Technology and Halitron

-1.0

Correlation Coefficient

SPENN Technology  Halitron

Pay attention - limited upside

The 3 months correlation between SPENN and Halitron is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding SPENN Technology AS and Halitron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halitron 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 Halitron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halitron has no effect on the direction of SPENN Technology i.e., SPENN Technology and Halitron go up and down completely randomly.

Pair Corralation between SPENN Technology and Halitron

If you would invest  61.00  in SPENN Technology AS on September 25, 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	Moves Against
Strength	Strong
Accuracy	99.21%
Values	Daily Returns

SPENN Technology AS  vs.  Halitron

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

Halitron

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Halitron 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 very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with SPENN Technology and Halitron

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

The idea behind SPENN Technology AS and Halitron 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.