Correlation Between NYSE Composite and Spark Networks
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Spark Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Spark Networks SE, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Spark Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Spark Networks.
Diversification Opportunities for NYSE Composite and Spark Networks
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and Spark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Spark Networks go up and down completely randomly.
Pair Corralation between NYSE Composite and Spark Networks
If you would invest 1,954,967 in NYSE Composite on October 26, 2024 and sell it today you would earn a total of 42,911 from holding NYSE Composite or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.69% |
| Values | Daily Returns |
NYSE Composite vs. Spark Networks SE
Performance |
| Timeline |
NYSE Composite and Spark Networks Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Spark Networks SE
Pair trading matchups for Spark Networks
Pair Trading with NYSE Composite and Spark Networks
The main advantage of trading using opposite NYSE Composite and Spark Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. Proficient Auto Logistics, | NYSE Composite vs. Hafnia Limited | NYSE Composite vs. Arm Holdings plc |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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