Correlation Between Color Star and LiveOne
Can any of the company-specific risk be diversified away by investing in both Color Star and LiveOne 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 Color Star and LiveOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Color Star Technology and LiveOne, you can compare the effects of market volatilities on Color Star and LiveOne 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 Color Star with a short position of LiveOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Color Star and LiveOne.
Diversification Opportunities for Color Star and LiveOne
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Color and LiveOne is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Color Star Technology and LiveOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LiveOne and Color Star 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 Color Star Technology are associated (or correlated) with LiveOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LiveOne has no effect on the direction of Color Star i.e., Color Star and LiveOne go up and down completely randomly.
Pair Corralation between Color Star and LiveOne
Considering the 90-day investment horizon Color Star Technology is expected to under-perform the LiveOne. In addition to that, Color Star is 1.52 times more volatile than LiveOne. It trades about -0.31 of its total potential returns per unit of risk. LiveOne is currently generating about 0.14 per unit of volatility. If you would invest 77.00 in LiveOne on November 1, 2024 and sell it today you would earn a total of 43.00 from holding LiveOne or generate 55.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Color Star Technology vs. LiveOne
Performance |
| Timeline |
| Color Star Technology |
| LiveOne |
Color Star and LiveOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Color Star and LiveOne
The main advantage of trading using opposite Color Star and LiveOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Color Star position performs unexpectedly, LiveOne 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 LiveOne will offset losses from the drop in LiveOne's long position.| Color Star vs. Guild Esports Plc | Color Star vs. New Wave Holdings | Color Star vs. Network Media Group | Color Star vs. Hall of Fame |
| LiveOne vs. Reading International B | LiveOne vs. Marcus | LiveOne vs. Reading International | LiveOne vs. News Corp B |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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