Correlation Between Dolphin Entertainment and Spark Networks

Specify exactly 2 symbols:
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

0.72
  Correlation Coefficient

Poor diversification

The 3 months correlation between Dolphin and Spark is 0.72. 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 0.31 times more return on investment than Spark Networks. However, Dolphin Entertainment is 3.18 times less risky than Spark Networks. It trades about -0.02 of its potential returns per unit of risk. Spark Networks SE is currently generating about -0.06 per unit of risk. If you would invest  275.00  in Dolphin Entertainment on December 29, 2023 and sell it today you would lose (135.00) from holding Dolphin Entertainment or give up 49.09% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy74.93%
ValuesDaily Returns

Dolphin Entertainment  vs.  Spark Networks SE

 Performance 
       Timeline  
Dolphin Entertainment 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Dolphin Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2024. The recent disarray may also be a sign of long period up-swing for the firm 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 latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

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.
The idea behind Dolphin Entertainment 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 Stocks Directory module to find actively traded stocks across global markets.

Other Complementary Tools

Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk