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Correlation Between DOW and Spark Networks

Analyzing existing cross correlation between DOW and Spark Networks. You can compare the effects of market volatilities on DOW 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 DOW with a short position of Spark Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of DOW and Spark Networks.
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Comparative Performance

 Predicted Return Density 
    
  Returns 

DOW  vs.  Spark Networks Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 3.66 times less return on investment than Spark Networks. But when comparing it to its historical volatility, DOW is 4.27 times less risky than Spark Networks. It trades about 0.12 of its potential returns per unit of risk. Spark Networks is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  550.00  in Spark Networks on January 19, 2020 and sell it today you would earn a total of  105.00  from holding Spark Networks or generate 19.09% return on investment over 30 days.

Pair Corralation between DOW and Spark Networks

0.35
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for DOW and Spark Networks

DOW diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Spark Networks Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Spark Networks and DOW 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 DOW 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 has no effect on the direction of DOW i.e. DOW and Spark Networks go up and down completely randomly.
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Check out your portfolio center. Please also try Fundamentals Matrix module to view fundamentals matrix and analyze how accounts are interrelated and interconnected with each other.