Correlation Between Arena Group and Spark Networks
Can any of the company-specific risk be diversified away by investing in both Arena Group and Spark Networks 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 Arena Group and Spark Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arena Group Holdings and Spark Networks SE, you can compare the effects of market volatilities on Arena Group and Spark Networks 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 Arena Group with a short position of Spark Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arena Group and Spark Networks.
Diversification Opportunities for Arena Group and Spark Networks
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arena and Spark is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Arena Group Holdings and Spark Networks SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spark Networks SE and Arena Group 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 Arena Group Holdings are associated (or correlated) with Spark Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spark Networks SE has no effect on the direction of Arena Group i.e., Arena Group and Spark Networks go up and down completely randomly.
Pair Corralation between Arena Group and Spark Networks
Given the investment horizon of 90 days Arena Group Holdings is expected to generate 1.21 times more return on investment than Spark Networks. However, Arena Group is 1.21 times more volatile than Spark Networks SE. It trades about 0.02 of its potential returns per unit of risk. Spark Networks SE is currently generating about -0.27 per unit of risk. If you would invest 449.00 in Arena Group Holdings on August 28, 2024 and sell it today you would lose (296.00) from holding Arena Group Holdings or give up 65.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.24% |
| Values | Daily Returns |
Arena Group Holdings vs. Spark Networks SE
Performance |
| Timeline |
| Arena Group Holdings |
| Spark Networks SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Arena Group and Spark Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arena Group and Spark Networks
The main advantage of trading using opposite Arena Group and Spark Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arena Group position performs unexpectedly, Spark Networks 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 Spark Networks will offset losses from the drop in Spark Networks' long position.| Arena Group vs. Trivago NV | Arena Group vs. Cheetah Mobile | Arena Group vs. Comscore | Arena Group vs. Thryv Holdings |
| Spark Networks vs. Locafy Limited | Spark Networks vs. Metalpha Technology Holding | Spark Networks vs. TuanChe ADR | Spark Networks vs. Thryv Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |