Correlation Between Gamehost and Live Ventures
Can any of the company-specific risk be diversified away by investing in both Gamehost and Live Ventures 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 Gamehost and Live Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamehost and Live Ventures, you can compare the effects of market volatilities on Gamehost and Live Ventures 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 Gamehost with a short position of Live Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamehost and Live Ventures.
Diversification Opportunities for Gamehost and Live Ventures
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gamehost and Live is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Gamehost and Live Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Ventures and Gamehost 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 Gamehost are associated (or correlated) with Live Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Ventures has no effect on the direction of Gamehost i.e., Gamehost and Live Ventures go up and down completely randomly.
Pair Corralation between Gamehost and Live Ventures
Assuming the 90 days horizon Gamehost is expected to generate 0.91 times more return on investment than Live Ventures. However, Gamehost is 1.1 times less risky than Live Ventures. It trades about 0.04 of its potential returns per unit of risk. Live Ventures is currently generating about -0.04 per unit of risk. If you would invest 585.00 in Gamehost on September 4, 2024 and sell it today you would earn a total of 193.00 from holding Gamehost or generate 32.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 67.07% |
| Values | Daily Returns |
Gamehost vs. Live Ventures
Performance |
| Timeline |
| Gamehost |
| Live Ventures |
Gamehost and Live Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamehost and Live Ventures
The main advantage of trading using opposite Gamehost and Live Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamehost position performs unexpectedly, Live Ventures 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 Ventures will offset losses from the drop in Live Ventures' long position.| Gamehost vs. Arhaus Inc | Gamehost vs. Floor Decor Holdings | Gamehost vs. Live Ventures | Gamehost vs. Cisco Systems |
| Live Ventures vs. Api Group Corp | Live Ventures vs. MYR Group | Live Ventures vs. Comfort Systems USA | Live Ventures vs. Arcosa Inc |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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