Correlation Between Spark Networks and EverQuote
Can any of the company-specific risk be diversified away by investing in both Spark Networks and EverQuote 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 EverQuote 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 EverQuote Class A, you can compare the effects of market volatilities on Spark Networks and EverQuote 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 EverQuote. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spark Networks and EverQuote.
Diversification Opportunities for Spark Networks and EverQuote
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spark and EverQuote is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Spark Networks SE and EverQuote Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EverQuote Class A 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 EverQuote. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EverQuote Class A has no effect on the direction of Spark Networks i.e., Spark Networks and EverQuote go up and down completely randomly.
Pair Corralation between Spark Networks and EverQuote
If you would invest 1,943 in EverQuote Class A on February 6, 2024 and sell it today you would earn a total of 195.00 from holding EverQuote Class A or generate 10.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Spark Networks SE vs. EverQuote Class A
Performance |
| Timeline |
| Spark Networks SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| EverQuote Class A |
Spark Networks and EverQuote Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spark Networks and EverQuote
The main advantage of trading using opposite Spark Networks and EverQuote positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spark Networks position performs unexpectedly, EverQuote 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 EverQuote will offset losses from the drop in EverQuote's long position.| Spark Networks vs. Metalpha Technology Holding | Spark Networks vs. TuanChe ADR | Spark Networks vs. Thryv Holdings | Spark Networks vs. 36Kr 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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