Correlation Between PropertyGuru and Spark Networks
Can any of the company-specific risk be diversified away by investing in both PropertyGuru 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 PropertyGuru and Spark Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PropertyGuru Group and Spark Networks SE, you can compare the effects of market volatilities on PropertyGuru 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 PropertyGuru with a short position of Spark Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of PropertyGuru and Spark Networks.
Diversification Opportunities for PropertyGuru and Spark Networks
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PropertyGuru and Spark is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding PropertyGuru Group 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 PropertyGuru 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 PropertyGuru Group 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 PropertyGuru i.e., PropertyGuru and Spark Networks go up and down completely randomly.
Pair Corralation between PropertyGuru and Spark Networks
Given the investment horizon of 90 days PropertyGuru Group is expected to generate 0.16 times more return on investment than Spark Networks. However, PropertyGuru Group is 6.35 times less risky than Spark Networks. It trades about 0.05 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 445.00 in PropertyGuru Group on August 31, 2024 and sell it today you would earn a total of 219.00 from holding PropertyGuru Group or generate 49.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.56% |
| Values | Daily Returns |
PropertyGuru Group vs. Spark Networks SE
Performance |
| Timeline |
| PropertyGuru Group |
| Spark Networks SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PropertyGuru and Spark Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PropertyGuru and Spark Networks
The main advantage of trading using opposite PropertyGuru and Spark Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PropertyGuru 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.| PropertyGuru vs. Comscore | PropertyGuru vs. Cheetah Mobile | PropertyGuru vs. EverQuote Class A | PropertyGuru vs. DouYu International 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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