Correlation Between Caterpillar and Live Current
Can any of the company-specific risk be diversified away by investing in both Caterpillar and Live Current 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 Caterpillar and Live Current into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caterpillar and Live Current Media, you can compare the effects of market volatilities on Caterpillar and Live Current 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 Caterpillar with a short position of Live Current. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and Live Current.
Diversification Opportunities for Caterpillar and Live Current
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Caterpillar and Live is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar and Live Current Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Current Media and Caterpillar 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 Caterpillar are associated (or correlated) with Live Current. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Current Media has no effect on the direction of Caterpillar i.e., Caterpillar and Live Current go up and down completely randomly.
Pair Corralation between Caterpillar and Live Current
If you would invest (100.00) in Live Current Media on January 5, 2025 and sell it today you would earn a total of 100.00 from holding Live Current Media or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Caterpillar vs. Live Current Media
Performance |
| Timeline |
| Caterpillar |
| Live Current Media |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Caterpillar and Live Current Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caterpillar and Live Current
The main advantage of trading using opposite Caterpillar and Live Current positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar position performs unexpectedly, Live Current 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 Live Current will offset losses from the drop in Live Current's long position.| Caterpillar vs. AGCO Corporation | Caterpillar vs. Nikola Corp | Caterpillar vs. PACCAR Inc | Caterpillar vs. Deere Company |
| Live Current vs. Guild Esports Plc | Live Current vs. Celtic plc | Live Current vs. Network Media Group | Live Current vs. OverActive Media Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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