Correlation Between Hasbro and Live Ventures
Can any of the company-specific risk be diversified away by investing in both Hasbro 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 Hasbro and Live Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hasbro Inc and Live Ventures, you can compare the effects of market volatilities on Hasbro 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 Hasbro with a short position of Live Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hasbro and Live Ventures.
Diversification Opportunities for Hasbro and Live Ventures
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hasbro and Live is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hasbro Inc and Live Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Ventures and Hasbro 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 Hasbro Inc 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 Hasbro i.e., Hasbro and Live Ventures go up and down completely randomly.
Pair Corralation between Hasbro and Live Ventures
Considering the 90-day investment horizon Hasbro Inc is expected to generate 0.43 times more return on investment than Live Ventures. However, Hasbro Inc is 2.34 times less risky than Live Ventures. It trades about -0.05 of its potential returns per unit of risk. Live Ventures is currently generating about -0.32 per unit of risk. If you would invest 6,726 in Hasbro Inc on August 29, 2024 and sell it today you would lose (326.00) from holding Hasbro Inc or give up 4.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hasbro Inc vs. Live Ventures
Performance |
| Timeline |
| Hasbro Inc |
| Live Ventures |
Hasbro and Live Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hasbro and Live Ventures
The main advantage of trading using opposite Hasbro and Live Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hasbro 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.The idea behind Hasbro Inc and Live Ventures 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 Ventures vs. Arhaus Inc | Live Ventures vs. Floor Decor Holdings | Live Ventures vs. Haverty Furniture Companies | Live Ventures vs. Kingfisher plc |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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