Correlation Between Douyu International and Spark Networks

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

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Can any of the company-specific risk be diversified away by investing in both Douyu International and Spark Networks at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Douyu International and Spark Networks into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Douyu International and Spark Networks

0.45
Correlation
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Very weak diversification

The 3 months correlation between Douyu and Spark is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Douyu International Holdings and Spark Networks Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Spark Networks and Douyu International 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 Douyu International Holdings 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 Douyu International i.e. Douyu International and Spark Networks go up and down completely randomly.

Pair Corralation between Douyu International and Spark Networks

Given the investment horizon of 30 days, Douyu International Holdings is expected to generate 1.08 times more return on investment than Spark Networks. However, Douyu International is 1.08 times more volatile than Spark Networks. It trades about 0.07 of its potential returns per unit of risk. Spark Networks is currently generating about 0.02 per unit of risk. If you would invest  771.00  in Douyu International Holdings on May 7, 2020 and sell it today you would earn a total of  141.00  from holding Douyu International Holdings or generate 18.29% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy96.88%
ValuesDaily Returns

Douyu International Holdings  vs.  Spark Networks Inc

 Performance (%) 
      Timeline 
Douyu International 
44

Douyu International Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Douyu International Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively unfluctuating essential indicators, Douyu International unveiled solid returns over the last few months and may actually be approaching a breakup point.
Spark Networks 
11

Spark Networks Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Spark Networks are ranked lower than 1 (%) 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 July 2020.

Douyu International and Spark Networks Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.


 
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