Correlation Between Spark Networks and DouYu International
Can any of the company-specific risk be diversified away by investing in both Spark Networks and DouYu International 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 DouYu International 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 DouYu International Holdings, you can compare the effects of market volatilities on Spark Networks and DouYu International 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 DouYu International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spark Networks and DouYu International.
Diversification Opportunities for Spark Networks and DouYu International
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Spark and DouYu is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Spark Networks SE and DouYu International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DouYu International 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 DouYu International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DouYu International has no effect on the direction of Spark Networks i.e., Spark Networks and DouYu International go up and down completely randomly.
Pair Corralation between Spark Networks and DouYu International
If you would invest 715.00 in DouYu International Holdings on January 26, 2024 and sell it today you would earn a total of 142.00 from holding DouYu International Holdings or generate 19.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Spark Networks SE vs. DouYu International Holdings
Performance |
| Timeline |
| Spark Networks SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| DouYu International |
Spark Networks and DouYu International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spark Networks and DouYu International
The main advantage of trading using opposite Spark Networks and DouYu International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spark Networks position performs unexpectedly, DouYu International 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 DouYu International will offset losses from the drop in DouYu International's long position.| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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