Correlation Between Meta Platforms and Spark Networks

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Meta Platforms 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 Meta Platforms and Spark Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meta Platforms and Spark Networks SE, you can compare the effects of market volatilities on Meta Platforms 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 Meta Platforms with a short position of Spark Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Platforms and Spark Networks.

Diversification Opportunities for Meta Platforms and Spark Networks

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Meta and Spark is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Meta Platforms 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 Meta Platforms 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 Meta Platforms 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 Meta Platforms i.e., Meta Platforms and Spark Networks go up and down completely randomly.

Pair Corralation between Meta Platforms and Spark Networks

If you would invest  16,949  in Meta Platforms on December 19, 2023 and sell it today you would earn a total of  0.00  from holding Meta Platforms or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy0.35%
ValuesDaily Returns

Meta Platforms  vs.  Spark Networks SE

 Performance 
       Timeline  
Meta Platforms 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Meta Platforms has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Meta Platforms is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.
Spark Networks SE 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Spark Networks SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Spark Networks is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Meta Platforms and Spark Networks Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Meta Platforms and Spark Networks

The main advantage of trading using opposite Meta Platforms and Spark Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Platforms 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.
The idea behind Meta Platforms and Spark Networks SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Other Complementary Tools

Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Global Correlations
Find global opportunities by holding instruments from different markets
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
CEOs Directory
Screen CEOs from public companies around the world
Fundamental Analysis
View fundamental data based on most recent published financial statements
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets