Correlation Between Deere and Live Current
Can any of the company-specific risk be diversified away by investing in both Deere 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 Deere and Live Current into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deere Company and Live Current Media, you can compare the effects of market volatilities on Deere 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 Deere with a short position of Live Current. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deere and Live Current.
Diversification Opportunities for Deere and Live Current
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Deere and Live is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Deere Company 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 Deere 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 Deere Company 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 Deere i.e., Deere and Live Current go up and down completely randomly.
Pair Corralation between Deere and Live Current
If you would invest 39,375 in Deere Company on September 13, 2024 and sell it today you would earn a total of 4,645 from holding Deere Company or generate 11.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.73% |
| Values | Daily Returns |
Deere Company vs. Live Current Media
Performance |
| Timeline |
| Deere Company |
| Live Current Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Deere and Live Current Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deere and Live Current
The main advantage of trading using opposite Deere and Live Current positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deere 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.The idea behind Deere Company and Live Current Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Live Current vs. Deere Company | Live Current vs. Caterpillar | Live Current vs. Lion Electric Corp | Live Current vs. Nikola 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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