Correlation Between Halitron and SpectrumDNA

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

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

Diversification Opportunities for Halitron and SpectrumDNA

-1.0

Correlation Coefficient

Halitron  SpectrumDNA

Pay attention - limited upside

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

Pair Corralation between Halitron and SpectrumDNA

If you would invest  0.98  in SpectrumDNA on August 26, 2025 and sell it today you would earn a total of  0.00  from holding SpectrumDNA or generate 0.0% return on investment over 90 days.

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

Halitron  vs.  SpectrumDNA

Halitron

Risk-Adjusted Performance

Weakest

Over the last 90 days Halitron has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Halitron is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

SpectrumDNA

Risk-Adjusted Performance

Weakest

Over the last 90 days SpectrumDNA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SpectrumDNA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Halitron and SpectrumDNA

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

The idea behind Halitron and SpectrumDNA 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.