Correlation Between Live Ventures and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Live Ventures and NYSE Composite 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 Live Ventures and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Ventures and NYSE Composite, you can compare the effects of market volatilities on Live Ventures and NYSE Composite 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 Live Ventures with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Ventures and NYSE Composite.
Diversification Opportunities for Live Ventures and NYSE Composite
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Live and NYSE is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Live Ventures 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 Live Ventures are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Live Ventures i.e., Live Ventures and NYSE Composite go up and down completely randomly.
Pair Corralation between Live Ventures and NYSE Composite
Given the investment horizon of 90 days Live Ventures is expected to under-perform the NYSE Composite. In addition to that, Live Ventures is 3.28 times more volatile than NYSE Composite. It trades about 0.0 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.04 per unit of volatility. If you would invest 1,490,214 in NYSE Composite on January 31, 2024 and sell it today you would earn a total of 292,893 from holding NYSE Composite or generate 19.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Live Ventures vs. NYSE Composite
Performance |
Timeline |
Live Ventures and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Live Ventures
Pair trading matchups for Live Ventures
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Live Ventures and NYSE Composite
The main advantage of trading using opposite Live Ventures and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Ventures position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Live Ventures vs. Api GroupCorp | Live Ventures vs. MYR Group | Live Ventures vs. Comfort Systems USA | Live Ventures vs. Construction Partners |
NYSE Composite vs. Dennys Corp | NYSE Composite vs. Asbury Automotive Group | NYSE Composite vs. Arrow Electronics | NYSE Composite vs. Biglari Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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