Correlation Between Live Ventures and National Beverage
Can any of the company-specific risk be diversified away by investing in both Live Ventures and National Beverage 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 National Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Ventures and National Beverage Corp, you can compare the effects of market volatilities on Live Ventures and National Beverage 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 National Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Ventures and National Beverage.
Diversification Opportunities for Live Ventures and National Beverage
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Live and National is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and National Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Beverage Corp 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 National Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Beverage Corp has no effect on the direction of Live Ventures i.e., Live Ventures and National Beverage go up and down completely randomly.
Pair Corralation between Live Ventures and National Beverage
Given the investment horizon of 90 days Live Ventures is expected to under-perform the National Beverage. In addition to that, Live Ventures is 2.59 times more volatile than National Beverage Corp. It trades about -0.05 of its total potential returns per unit of risk. National Beverage Corp is currently generating about 0.24 per unit of volatility. If you would invest 4,577 in National Beverage Corp on September 2, 2024 and sell it today you would earn a total of 362.00 from holding National Beverage Corp or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Ventures vs. National Beverage Corp
Performance |
| Timeline |
| Live Ventures |
| National Beverage Corp |
Live Ventures and National Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Ventures and National Beverage
The main advantage of trading using opposite Live Ventures and National Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Ventures position performs unexpectedly, National Beverage 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 National Beverage will offset losses from the drop in National Beverage's long position.| Live Ventures vs. Arhaus Inc | Live Ventures vs. Floor Decor Holdings | Live Ventures vs. Haverty Furniture Companies | Live Ventures vs. Kingfisher plc |
| National Beverage vs. Celsius Holdings | National Beverage vs. Monster Beverage Corp | National Beverage vs. Coca Cola Femsa SAB | National Beverage vs. Keurig Dr Pepper |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |