Correlation Between Live Ventures and Kansai Electric
Can any of the company-specific risk be diversified away by investing in both Live Ventures and Kansai Electric 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 Kansai Electric 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 Kansai Electric, you can compare the effects of market volatilities on Live Ventures and Kansai Electric 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 Kansai Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Ventures and Kansai Electric.
Diversification Opportunities for Live Ventures and Kansai Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Live and Kansai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and The Kansai Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kansai Electric 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 Kansai Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kansai Electric has no effect on the direction of Live Ventures i.e., Live Ventures and Kansai Electric go up and down completely randomly.
Pair Corralation between Live Ventures and Kansai Electric
Given the investment horizon of 90 days Live Ventures is expected to under-perform the Kansai Electric. In addition to that, Live Ventures is 1.32 times more volatile than The Kansai Electric. It trades about -0.09 of its total potential returns per unit of risk. The Kansai Electric is currently generating about 0.07 per unit of volatility. If you would invest 1,295 in The Kansai Electric on September 12, 2024 and sell it today you would earn a total of 253.00 from holding The Kansai Electric or generate 19.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 37.16% |
| Values | Daily Returns |
Live Ventures vs. The Kansai Electric
Performance |
| Timeline |
| Live Ventures |
| Kansai Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Live Ventures and Kansai Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Ventures and Kansai Electric
The main advantage of trading using opposite Live Ventures and Kansai Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Ventures position performs unexpectedly, Kansai Electric 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 Kansai Electric will offset losses from the drop in Kansai Electric's long position.| Live Ventures vs. Arhaus Inc | Live Ventures vs. Floor Decor Holdings | Live Ventures vs. Haverty Furniture Companies | Live Ventures vs. Kirklands |
| Kansai Electric vs. United Utilities Group | Kansai Electric vs. JBG SMITH Properties | Kansai Electric vs. Hooker Furniture | Kansai Electric vs. Live Ventures |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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