Correlation Between Spark Networks and Phoenix New
Can any of the company-specific risk be diversified away by investing in both Spark Networks and Phoenix New 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 Phoenix New 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 Phoenix New Media, you can compare the effects of market volatilities on Spark Networks and Phoenix New 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 Phoenix New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spark Networks and Phoenix New.
Diversification Opportunities for Spark Networks and Phoenix New
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spark and Phoenix is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Spark Networks SE and Phoenix New Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix New Media 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 Phoenix New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix New Media has no effect on the direction of Spark Networks i.e., Spark Networks and Phoenix New go up and down completely randomly.
Pair Corralation between Spark Networks and Phoenix New
Considering the 90-day investment horizon Spark Networks SE is expected to under-perform the Phoenix New. In addition to that, Spark Networks is 2.46 times more volatile than Phoenix New Media. It trades about -0.05 of its total potential returns per unit of risk. Phoenix New Media is currently generating about 0.0 per unit of volatility. If you would invest 325.00 in Phoenix New Media on January 20, 2024 and sell it today you would lose (143.00) from holding Phoenix New Media or give up 44.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 77.98% |
| Values | Daily Returns |
Spark Networks SE vs. Phoenix New Media
Performance |
| Timeline |
| Spark Networks SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Phoenix New Media |
Spark Networks and Phoenix New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spark Networks and Phoenix New
The main advantage of trading using opposite Spark Networks and Phoenix New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spark Networks position performs unexpectedly, Phoenix New 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 Phoenix New will offset losses from the drop in Phoenix New'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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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