Correlation Between Liberty Tri and Spark Networks
Can any of the company-specific risk be diversified away by investing in both Liberty Tri 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 Liberty Tri and Spark Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Tri and Spark Networks SE, you can compare the effects of market volatilities on Liberty Tri 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 Liberty Tri with a short position of Spark Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Tri and Spark Networks.
Diversification Opportunities for Liberty Tri and Spark Networks
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Liberty and Spark is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Tri 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 Liberty Tri 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 Liberty Tri 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 Liberty Tri i.e., Liberty Tri and Spark Networks go up and down completely randomly.
Pair Corralation between Liberty Tri and Spark Networks
Assuming the 90 days horizon Liberty Tri is expected to generate 0.21 times more return on investment than Spark Networks. However, Liberty Tri is 4.81 times less risky than Spark Networks. It trades about 0.19 of its potential returns per unit of risk. Spark Networks SE is currently generating about -0.1 per unit of risk. If you would invest 62.00 in Liberty Tri on August 31, 2024 and sell it today you would earn a total of 14.00 from holding Liberty Tri or generate 22.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liberty Tri vs. Spark Networks SE
Performance |
| Timeline |
| Liberty Tri |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Spark Networks SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Liberty Tri and Spark Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Tri and Spark Networks
The main advantage of trading using opposite Liberty Tri and Spark Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Tri 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.| Liberty Tri vs. MediaAlpha | Liberty Tri vs. Vivid Seats | Liberty Tri vs. Cheetah Mobile | Liberty Tri vs. Autohome |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |