Correlation Between Spark Networks and Cheetah Mobile
Can any of the company-specific risk be diversified away by investing in both Spark Networks and Cheetah Mobile 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 Spark Networks and Cheetah Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spark Networks SE and Cheetah Mobile, you can compare the effects of market volatilities on Spark Networks and Cheetah Mobile 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 Spark Networks with a short position of Cheetah Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spark Networks and Cheetah Mobile.
Diversification Opportunities for Spark Networks and Cheetah Mobile
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Spark and Cheetah is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Spark Networks SE and Cheetah Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheetah Mobile and Spark Networks 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 Spark Networks SE are associated (or correlated) with Cheetah Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheetah Mobile has no effect on the direction of Spark Networks i.e., Spark Networks and Cheetah Mobile go up and down completely randomly.
Pair Corralation between Spark Networks and Cheetah Mobile
Considering the 90-day investment horizon Spark Networks SE is expected to under-perform the Cheetah Mobile. In addition to that, Spark Networks is 2.21 times more volatile than Cheetah Mobile. It trades about -0.04 of its total potential returns per unit of risk. Cheetah Mobile is currently generating about 0.04 per unit of volatility. If you would invest 295.00 in Cheetah Mobile on November 4, 2024 and sell it today you would earn a total of 151.00 from holding Cheetah Mobile or generate 51.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 22.63% |
| Values | Daily Returns |
Spark Networks SE vs. Cheetah Mobile
Performance |
| Timeline |
| Spark Networks SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cheetah Mobile |
Spark Networks and Cheetah Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spark Networks and Cheetah Mobile
The main advantage of trading using opposite Spark Networks and Cheetah Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spark Networks position performs unexpectedly, Cheetah Mobile 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 Cheetah Mobile will offset losses from the drop in Cheetah Mobile's long position.| Spark Networks vs. Locafy Limited | Spark Networks vs. Metalpha Technology Holding | Spark Networks vs. TuanChe ADR | Spark Networks vs. Thryv Holdings |
| Cheetah Mobile vs. Tuniu Corp | Cheetah Mobile vs. Yirendai | Cheetah Mobile vs. Xunlei Ltd Adr | Cheetah Mobile vs. Phoenix New Media |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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