Correlation Between Spark Networks and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Spark Networks and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Spark Networks and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spark Networks and Dow Jones.
Diversification Opportunities for Spark Networks and Dow Jones
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spark and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Spark Networks SE and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Spark Networks i.e., Spark Networks and Dow Jones go up and down completely randomly.
Pair Corralation between Spark Networks and Dow Jones
If you would invest 3,181,914 in Dow Jones Industrial on December 1, 2024 and sell it today you would earn a total of 1,202,177 from holding Dow Jones Industrial or generate 37.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Spark Networks SE vs. Dow Jones Industrial
Performance |
Timeline |
Spark Networks and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Spark Networks SE
Pair trading matchups for Spark Networks
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Spark Networks and Dow Jones
The main advantage of trading using opposite Spark Networks and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spark Networks position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.Spark Networks vs. Locafy Limited | Spark Networks vs. Metalpha Technology Holding | Spark Networks vs. TuanChe ADR | Spark Networks vs. Thryv Holdings |
Dow Jones vs. Cannae Holdings | Dow Jones vs. Fidus Investment Corp | Dow Jones vs. SEI Investments | Dow Jones vs. Cracker Barrel Old |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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