Correlation Between SPENN Technology and ProConcept Marketing

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

Diversification Opportunities for SPENN Technology and ProConcept Marketing

0.0

Correlation Coefficient

SPENN Technology  ProConcept Marketing

Pay attention - limited upside

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

Pair Corralation between SPENN Technology and ProConcept Marketing

If you would invest  5.83  in ProConcept Marketing Group on October 20, 2024 and sell it today you would lose (0.13) from holding ProConcept Marketing Group or give up 2.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SPENN Technology AS  vs.  ProConcept Marketing Group

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.

ProConcept Marketing

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ProConcept Marketing Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, ProConcept Marketing displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SPENN Technology and ProConcept Marketing

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

The idea behind SPENN Technology AS and ProConcept Marketing 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.