Correlation Between Live Ventures and Connecticut Light
Can any of the company-specific risk be diversified away by investing in both Live Ventures and Connecticut Light 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 Live Ventures and Connecticut Light into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Ventures and The Connecticut Light, you can compare the effects of market volatilities on Live Ventures and Connecticut Light 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 Live Ventures with a short position of Connecticut Light. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Ventures and Connecticut Light.
Diversification Opportunities for Live Ventures and Connecticut Light
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Live and Connecticut is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and The Connecticut Light in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Connecticut Light and Live Ventures 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 Live Ventures are associated (or correlated) with Connecticut Light. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Connecticut Light has no effect on the direction of Live Ventures i.e., Live Ventures and Connecticut Light go up and down completely randomly.
Pair Corralation between Live Ventures and Connecticut Light
Given the investment horizon of 90 days Live Ventures is expected to generate 4.22 times more return on investment than Connecticut Light. However, Live Ventures is 4.22 times more volatile than The Connecticut Light. It trades about -0.07 of its potential returns per unit of risk. The Connecticut Light is currently generating about -0.37 per unit of risk. If you would invest 1,113 in Live Ventures on September 3, 2024 and sell it today you would lose (79.00) from holding Live Ventures or give up 7.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Ventures vs. The Connecticut Light
Performance |
| Timeline |
| Live Ventures |
| Connecticut Light |
Live Ventures and Connecticut Light Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Ventures and Connecticut Light
The main advantage of trading using opposite Live Ventures and Connecticut Light positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Ventures position performs unexpectedly, Connecticut Light 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 Connecticut Light will offset losses from the drop in Connecticut Light's long position.| Live Ventures vs. Arhaus Inc | Live Ventures vs. Floor Decor Holdings | Live Ventures vs. Kingfisher plc | Live Ventures vs. Haverty Furniture Companies |
| Connecticut Light vs. Marine Products | Connecticut Light vs. U Power Limited | Connecticut Light vs. BRP Inc | Connecticut Light vs. Mayfair Gold 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |