Correlation Between SPENN Technology and ATIF Holdings

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

Diversification Opportunities for SPENN Technology and ATIF Holdings

0.0

Correlation Coefficient

SPENN Technology  ATIF Holdings

Pay attention - limited upside

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

Pair Corralation between SPENN Technology and ATIF Holdings

Assuming the 90 days horizon SPENN Technology AS is expected to under-perform the ATIF Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, SPENN Technology AS is 2.9 times less risky than ATIF Holdings. The pink sheet trades about -0.06 of its potential returns per unit of risk. The ATIF Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  155.00  in ATIF Holdings on September 12, 2024 and sell it today you would lose (87.00) from holding ATIF Holdings or give up 56.13% 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.  ATIF Holdings

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.

ATIF Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with SPENN Technology and ATIF Holdings

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

The idea behind SPENN Technology AS and ATIF Holdings 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.