Correlation Between Spark Networks and Super League
Can any of the company-specific risk be diversified away by investing in both Spark Networks and Super League 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 Super League 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 Super League Gaming, you can compare the effects of market volatilities on Spark Networks and Super League 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 Super League. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spark Networks and Super League.
Diversification Opportunities for Spark Networks and Super League
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Spark and Super is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Spark Networks SE and Super League Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super League Gaming 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 Super League. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super League Gaming has no effect on the direction of Spark Networks i.e., Spark Networks and Super League go up and down completely randomly.
Pair Corralation between Spark Networks and Super League
Considering the 90-day investment horizon Spark Networks SE is expected to under-perform the Super League. In addition to that, Spark Networks is 3.03 times more volatile than Super League Gaming. It trades about -0.27 of its total potential returns per unit of risk. Super League Gaming is currently generating about -0.23 per unit of volatility. If you would invest 40.00 in Super League Gaming on August 28, 2024 and sell it today you would lose (5.00) from holding Super League Gaming or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spark Networks SE vs. Super League Gaming
Performance |
| Timeline |
| Spark Networks SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Super League Gaming |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Spark Networks and Super League Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spark Networks and Super League
The main advantage of trading using opposite Spark Networks and Super League positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spark Networks position performs unexpectedly, Super League 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 Super League will offset losses from the drop in Super League's long position.| Spark Networks vs. Locafy Limited | Spark Networks vs. Metalpha Technology Holding | Spark Networks vs. TuanChe ADR | Spark Networks vs. Thryv Holdings |
| Super League vs. Comscore | Super League vs. Arena Group Holdings | Super League vs. EverQuote Class A | Super League vs. Metalpha Technology Holding |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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