Correlation Between Spark Networks and Citigroup
Can any of the company-specific risk be diversified away by investing in both Spark Networks and Citigroup 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 Citigroup 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 Citigroup, you can compare the effects of market volatilities on Spark Networks and Citigroup 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 Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spark Networks and Citigroup.
Diversification Opportunities for Spark Networks and Citigroup
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spark and Citigroup is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Spark Networks SE and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Spark Networks i.e., Spark Networks and Citigroup go up and down completely randomly.
Pair Corralation between Spark Networks and Citigroup
If you would invest 1.30 in Spark Networks SE on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Spark Networks SE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Spark Networks SE vs. Citigroup
Performance |
| Timeline |
| Spark Networks SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Citigroup |
Spark Networks and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spark Networks and Citigroup
The main advantage of trading using opposite Spark Networks and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spark Networks position performs unexpectedly, Citigroup 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 Citigroup will offset losses from the drop in Citigroup's long position.| Spark Networks vs. Locafy Limited | Spark Networks vs. Metalpha Technology Holding | Spark Networks vs. TuanChe ADR | Spark Networks vs. Thryv Holdings |
| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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