Correlation Between Adams (JOHN) and SpectrumDNA

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

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

Diversification Opportunities for Adams (JOHN) and SpectrumDNA

0.0

Correlation Coefficient

Adams (JOHN)  SpectrumDNA

Pay attention - limited upside

The 3 months correlation between Adams and SpectrumDNA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Adams Life Corp and SpectrumDNA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpectrumDNA and Adams (JOHN) 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 Adams Life Corp 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 Adams (JOHN) i.e., Adams (JOHN) and SpectrumDNA go up and down completely randomly.

Pair Corralation between Adams (JOHN) and SpectrumDNA

If you would invest  0.98  in SpectrumDNA on August 10, 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	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Adams Life Corp  vs.  SpectrumDNA

Adams Life Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Adams Life Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Adams (JOHN) is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

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 recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Adams (JOHN) and SpectrumDNA

The main advantage of trading using opposite Adams (JOHN) and SpectrumDNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adams (JOHN) 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 Adams Life Corp 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.