Correlation Between Spectral and Talkspace

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

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

Diversification Opportunities for Spectral and Talkspace

-0.73

Correlation Coefficient

Spectral  Talkspace

Pay attention - limited upside

The 3 months correlation between Spectral and Talkspace is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Spectral AI and Talkspace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talkspace and Spectral 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 Spectral AI are associated (or correlated) with Talkspace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talkspace has no effect on the direction of Spectral i.e., Spectral and Talkspace go up and down completely randomly.

Pair Corralation between Spectral and Talkspace

Given the investment horizon of 90 days Spectral AI is expected to generate 1.81 times more return on investment than Talkspace. However, Spectral is 1.81 times more volatile than Talkspace. It trades about 0.21 of its potential returns per unit of risk. Talkspace is currently generating about -0.1 per unit of risk. If you would invest  129.00  in Spectral AI on May 1, 2025 and sell it today you would earn a total of  117.00  from holding Spectral AI or generate 90.7% return on investment over 90 days.

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

Spectral AI  vs.  Talkspace

Spectral AI

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Spectral AI are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Spectral demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Talkspace

Risk-Adjusted Performance

Very Weak

Over the last 90 days Talkspace has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Spectral and Talkspace

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

The idea behind Spectral AI and Talkspace 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.