Correlation Between Live Ventures and Natures Miracle
Can any of the company-specific risk be diversified away by investing in both Live Ventures and Natures Miracle 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 Natures Miracle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Ventures and Natures Miracle Holding, you can compare the effects of market volatilities on Live Ventures and Natures Miracle 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 Natures Miracle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Ventures and Natures Miracle.
Diversification Opportunities for Live Ventures and Natures Miracle
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Live and Natures is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and Natures Miracle Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natures Miracle Holding 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 Natures Miracle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natures Miracle Holding has no effect on the direction of Live Ventures i.e., Live Ventures and Natures Miracle go up and down completely randomly.
Pair Corralation between Live Ventures and Natures Miracle
Given the investment horizon of 90 days Live Ventures is expected to generate 0.45 times more return on investment than Natures Miracle. However, Live Ventures is 2.22 times less risky than Natures Miracle. It trades about -0.02 of its potential returns per unit of risk. Natures Miracle Holding is currently generating about -0.18 per unit of risk. If you would invest 1,045 in Live Ventures on September 15, 2024 and sell it today you would lose (46.00) from holding Live Ventures or give up 4.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Ventures vs. Natures Miracle Holding
Performance |
| Timeline |
| Live Ventures |
| Natures Miracle Holding |
Live Ventures and Natures Miracle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Ventures and Natures Miracle
The main advantage of trading using opposite Live Ventures and Natures Miracle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Ventures position performs unexpectedly, Natures Miracle 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 Natures Miracle will offset losses from the drop in Natures Miracle'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 |
| Natures Miracle vs. National CineMedia | Natures Miracle vs. Organic Sales and | Natures Miracle vs. Integral Ad Science | Natures Miracle 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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