Correlation Between Spark Networks and Fiverr International

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

Specify exactly 2 symbols:

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

Diversification Opportunities for Spark Networks and Fiverr International

-0.69
  Correlation Coefficient
Spark Networks
Fiverr International

Excellent diversification

The 3 months correlation between Spark and Fiverr is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Spark Networks Inc and Fiverr International in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Fiverr International 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 Fiverr International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiverr International has no effect on the direction of Spark Networks i.e., Spark Networks and Fiverr International go up and down completely randomly.

Pair Corralation between Spark Networks and Fiverr International

Considering the 90-day investment horizon Spark Networks is expected to generate 1.24 times more return on investment than Fiverr International. However, Spark Networks is 1.24 times more volatile than Fiverr International. It trades about 0.17 of its potential returns per unit of risk. Fiverr International is currently generating about -0.37 per unit of risk. If you would invest  243.00  in Spark Networks on October 19, 2021 and sell it today you would earn a total of  88.00  from holding Spark Networks or generate 36.21% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Spark Networks Inc  vs.  Fiverr International

 Performance (%) 
      Timeline 
Spark Networks 
Spark Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Spark Networks are ranked lower than 5 (%) 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

Fiverr International 
Fiverr Performance
0 of 100
Over the last 90 days Fiverr International has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2022. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Fiverr Price Channel

Spark Networks and Fiverr International Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Spark Networks and Fiverr International

The main advantage of trading using opposite Spark Networks and Fiverr International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spark Networks position performs unexpectedly, Fiverr International 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 Fiverr International will offset losses from the drop in Fiverr International's long position.
The idea behind Spark Networks and Fiverr International 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 Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go