Correlation Between Iris Energy and SPENN Technology

Can any of the company-specific risk be diversified away by investing in both Iris Energy and SPENN Technology 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 Iris Energy and SPENN Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Iris Energy and SPENN Technology AS, you can compare the effects of market volatilities on Iris Energy and SPENN Technology 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 Iris Energy with a short position of SPENN Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iris Energy and SPENN Technology.

Diversification Opportunities for Iris Energy and SPENN Technology

0.0

Correlation Coefficient

Iris Energy  SPENN Technology

Pay attention - limited upside

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

Pair Corralation between Iris Energy and SPENN Technology

If you would invest  677.00  in Iris Energy on September 5, 2024 and sell it today you would earn a total of  616.00  from holding Iris Energy or generate 90.99% return on investment over 90 days.

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

Iris Energy  vs.  SPENN Technology AS

Iris Energy

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Iris Energy are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain technical and fundamental indicators, Iris Energy displayed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Iris Energy and SPENN Technology

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

The idea behind Iris Energy and SPENN Technology AS 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.