Correlation Between American Rebel and Scisparc

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

By analyzing existing cross correlation between American Rebel Holdings and Scisparc, you can compare the effects of market volatilities on American Rebel and Scisparc 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 American Rebel with a short position of Scisparc. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Rebel and Scisparc.

Diversification Opportunities for American Rebel and Scisparc

0.9

Correlation Coefficient

American Rebel  Scisparc

Almost no diversification

The 3 months correlation between American and Scisparc is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding American Rebel Holdings and Scisparc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scisparc and American Rebel 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 American Rebel Holdings are associated (or correlated) with Scisparc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scisparc has no effect on the direction of American Rebel i.e., American Rebel and Scisparc go up and down completely randomly.

Pair Corralation between American Rebel and Scisparc

Given the investment horizon of 90 days American Rebel is expected to generate 1.55 times less return on investment than Scisparc. But when comparing it to its historical volatility, American Rebel Holdings is 2.03 times less risky than Scisparc. It trades about 0.05 of its potential returns per unit of risk. Scisparc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  653.00  in Scisparc on June 28, 2025 and sell it today you would lose (200.00) from holding Scisparc or give up 30.63% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

American Rebel Holdings  vs.  Scisparc

American Rebel Holdings

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in American Rebel Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal technical and fundamental indicators, American Rebel sustained solid returns over the last few months and may actually be approaching a breakup point.

Scisparc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Scisparc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Scisparc exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with American Rebel and Scisparc

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

The idea behind American Rebel Holdings and Scisparc 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.