Correlation Between GM and Spark Networks

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

Specify exactly 2 symbols:

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

Diversification Opportunities for GM and Spark Networks

0.73
Correlation
<div class='circular--portrait-small' style='font-weight: 700;background:#347AFC;color: #ffffff;font-size:1.1em;padding-top: 10px;;'>GM</div>
<div class='circular--portrait-small' style='font-weight: 700;background:#008000;color: #f8f8f8;font-size:1.1em;padding-top: 10px;;'>SN</div>

Poor diversification

The 3 months correlation between GM and Spark is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding General Motors Company and Spark Networks Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Spark Networks and GM 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 General Motors 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 GM i.e. GM and Spark Networks go up and down completely randomly.

Pair Corralation between GM and Spark Networks

Allowing for the 30-days total investment horizon, General Motors is expected to generate 0.86 times more return on investment than Spark Networks. However, General Motors is 1.16 times less risky than Spark Networks. It trades about 0.09 of its potential returns per unit of risk. Spark Networks is currently generating about 0.02 per unit of risk. If you would invest  2,469  in General Motors on May 7, 2020 and sell it today you would earn a total of  592.00  from holding General Motors or generate 23.98% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

General Motors Company  vs.  Spark Networks Inc

 Performance (%) 
      Timeline 
General Motors 
55

GM Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in General Motors are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. Even with considerably conflicting technical indicators, GM revealed 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.

GM and Spark Networks Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Global Correlations module to find global opportunities by holding instruments from different markets.


 
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page