Correlation Between Dolphin Entertainment and Spark Networks
Can any of the company-specific risk be diversified away by investing in both Dolphin Entertainment and Spark Networks 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 Dolphin Entertainment and Spark Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dolphin Entertainment and Spark Networks SE, you can compare the effects of market volatilities on Dolphin Entertainment and Spark Networks 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 Dolphin Entertainment with a short position of Spark Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dolphin Entertainment and Spark Networks.
Diversification Opportunities for Dolphin Entertainment and Spark Networks
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dolphin and Spark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dolphin Entertainment and Spark Networks SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spark Networks SE and Dolphin Entertainment 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 Dolphin Entertainment are associated (or correlated) with Spark Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spark Networks SE has no effect on the direction of Dolphin Entertainment i.e., Dolphin Entertainment and Spark Networks go up and down completely randomly.
Pair Corralation between Dolphin Entertainment and Spark Networks
Given the investment horizon of 90 days Dolphin Entertainment is expected to generate 0.35 times more return on investment than Spark Networks. However, Dolphin Entertainment is 2.87 times less risky than Spark Networks. It trades about -0.03 of its potential returns per unit of risk. Spark Networks SE is currently generating about -0.05 per unit of risk. If you would invest 383.00 in Dolphin Entertainment on January 20, 2024 and sell it today you would lose (263.00) from holding Dolphin Entertainment or give up 68.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 77.05% |
| Values | Daily Returns |
Dolphin Entertainment vs. Spark Networks SE
Performance |
| Timeline |
| Dolphin Entertainment |
| Spark Networks SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dolphin Entertainment and Spark Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dolphin Entertainment and Spark Networks
The main advantage of trading using opposite Dolphin Entertainment and Spark Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dolphin Entertainment position performs unexpectedly, Spark Networks 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 Spark Networks will offset losses from the drop in Spark Networks' long position.| Dolphin Entertainment vs. Cinemark Holdings | Dolphin Entertainment vs. News Corp B | Dolphin Entertainment vs. Marcus | Dolphin Entertainment vs. Liberty Media |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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