Correlation Between Spark Networks and Acuityads Holdings

By analyzing existing cross correlation between Spark Networks and Acuityads Holdings, you can compare the effects of market volatilities on Spark Networks and Acuityads Holdings 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 Acuityads Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spark Networks and Acuityads Holdings.

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Can any of the company-specific risk be diversified away by investing in both Spark Networks and Acuityads Holdings 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 Acuityads Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for Spark Networks and Acuityads Holdings

-0.18
  Correlation Coefficient
Spark Networks
Acuityads Holdings

Good diversification

The 1 month correlation between Spark and Acuityads is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Spark Networks Inc and Acuityads Holdings in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Acuityads Holdings 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 are associated (or correlated) with Acuityads Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acuityads Holdings has no effect on the direction of Spark Networks i.e., Spark Networks and Acuityads Holdings go up and down completely randomly.

Pair Corralation between Spark Networks and Acuityads Holdings

Considering the 90-day investment horizon Spark Networks is expected to generate 0.89 times more return on investment than Acuityads Holdings. However, Spark Networks is 1.12 times less risky than Acuityads Holdings. It trades about 0.17 of its potential returns per unit of risk. Acuityads Holdings is currently generating about -0.05 per unit of risk. If you would invest  294.00  in Spark Networks on October 19, 2021 and sell it today you would earn a total of  37.00  from holding Spark Networks or generate 12.59% return on investment over 90 days.
Time Period1 Month [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Spark Networks Inc  vs.  Acuityads Holdings

 Performance (%) 
      Timeline 
Spark Networks 
Spark Performance
12 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Spark Networks are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Spark Networks showed solid returns over the last few months and may actually be approaching a breakup point.

Spark Price Channel

Acuityads Holdings 
Acuityads Performance
0 of 100
Over the last 90 days Acuityads Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Acuityads Price Channel

Spark Networks and Acuityads Holdings Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Spark Networks and Acuityads Holdings

The main advantage of trading using opposite Spark Networks and Acuityads Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spark Networks position performs unexpectedly, Acuityads Holdings 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 Acuityads Holdings will offset losses from the drop in Acuityads Holdings' long position.
The idea behind Spark Networks and Acuityads Holdings 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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