Correlation Between Live Ventures and CARRIER

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Can any of the company-specific risk be diversified away by investing in both Live Ventures and CARRIER 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 CARRIER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Ventures and CARRIER GLOBAL P, you can compare the effects of market volatilities on Live Ventures and CARRIER 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 CARRIER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Ventures and CARRIER.

Diversification Opportunities for Live Ventures and CARRIER

0.59
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Live and CARRIER is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and CARRIER GLOBAL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARRIER GLOBAL P 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 CARRIER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARRIER GLOBAL P has no effect on the direction of Live Ventures i.e., Live Ventures and CARRIER go up and down completely randomly.

Pair Corralation between Live Ventures and CARRIER

Given the investment horizon of 90 days Live Ventures is expected to under-perform the CARRIER. In addition to that, Live Ventures is 7.77 times more volatile than CARRIER GLOBAL P. It trades about -0.16 of its total potential returns per unit of risk. CARRIER GLOBAL P is currently generating about -0.05 per unit of volatility. If you would invest  9,342  in CARRIER GLOBAL P on September 2, 2024 and sell it today you would lose (288.00) from holding CARRIER GLOBAL P or give up 3.08% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy98.41%
ValuesDaily Returns

Live Ventures  vs.  CARRIER GLOBAL P

 Performance 
       Timeline  
Live Ventures 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Live Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
CARRIER GLOBAL P 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CARRIER GLOBAL P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CARRIER is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Live Ventures and CARRIER Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Live Ventures and CARRIER

The main advantage of trading using opposite Live Ventures and CARRIER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Ventures position performs unexpectedly, CARRIER 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 CARRIER will offset losses from the drop in CARRIER's long position.
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The idea behind Live Ventures and CARRIER GLOBAL P 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.
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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