Correlation Between Spectrum Brands and Afya
Can any of the company-specific risk be diversified away by investing in both Spectrum Brands and Afya 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 Spectrum Brands and Afya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spectrum Brands Holdings and Afya, you can compare the effects of market volatilities on Spectrum Brands and Afya 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 Spectrum Brands with a short position of Afya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectrum Brands and Afya.
Diversification Opportunities for Spectrum Brands and Afya
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Spectrum and Afya is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Spectrum Brands Holdings and Afya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afya and Spectrum Brands 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 Spectrum Brands Holdings are associated (or correlated) with Afya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afya has no effect on the direction of Spectrum Brands i.e., Spectrum Brands and Afya go up and down completely randomly.
Pair Corralation between Spectrum Brands and Afya
Considering the 90-day investment horizon Spectrum Brands Holdings is expected to generate 1.56 times more return on investment than Afya. However, Spectrum Brands is 1.56 times more volatile than Afya. It trades about 0.07 of its potential returns per unit of risk. Afya is currently generating about 0.02 per unit of risk. If you would invest 5,442 in Spectrum Brands Holdings on August 30, 2025 and sell it today you would earn a total of 488.00 from holding Spectrum Brands Holdings or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spectrum Brands Holdings vs. Afya
Performance |
| Timeline |
| Spectrum Brands Holdings |
| Afya |
Spectrum Brands and Afya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spectrum Brands and Afya
The main advantage of trading using opposite Spectrum Brands and Afya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrum Brands position performs unexpectedly, Afya 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 Afya will offset losses from the drop in Afya's long position.| Spectrum Brands vs. Starwin Media Holdings | Spectrum Brands vs. Eddy Smart Home | Spectrum Brands vs. Bassett Furniture Industries | Spectrum Brands vs. Dave Busters Entertainment |
| Afya vs. T Mobile US, 5500 | Afya vs. T Mobile US, 5500 | Afya vs. Eagle Mountain Mining | Afya vs. Kingsrose Mining Limited |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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