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Correlation Between Facebook and Spark Networks

Analyzing existing cross correlation between Facebook and Spark Networks. You can compare the effects of market volatilities on Facebook 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 Facebook with a short position of Spark Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Facebook and Spark Networks.

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Diversification Opportunities for Facebook and Spark Networks

Facebook Inc diversification synergy
0.24
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Modest diversification

The 3 months correlation between Facebook and Spark is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and Spark Networks Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Spark Networks and Facebook 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 Facebook 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 has no effect on the direction of Facebook i.e. Facebook and Spark Networks go up and down completely randomly.

Pair Corralation between Facebook and Spark Networks

Allowing for the 30-days total investment horizon, Facebook is expected to under-perform the Spark Networks. But the stock apears to be less risky and, when comparing its historical volatility, Facebook is 2.24 times less risky than Spark Networks. The stock trades about -0.01 of its potential returns per unit of risk. The Spark Networks is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  538.00  in Spark Networks on January 26, 2020 and sell it today you would earn a total of  26.00  from holding Spark Networks or generate 4.83% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Facebook Inc  vs.  Spark Networks Inc

 Performance (%) 
    
  Timeline 
Facebook 
00

Risk-Adjusted Performance

Over the last 30 days Facebook has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Facebook is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short term losses for the investors.
Spark Networks 
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Spark Networks are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. Inspite fairly weak primary indicators, Spark Networks may actually be approaching a critical reversion point that can send shares even higher in March 2020.

Facebook and Spark Networks Volatility Contrast

 Predicted Return Density 
    
  Returns 
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