Correlation Between Live Ventures and Universal
Can any of the company-specific risk be diversified away by investing in both Live Ventures and Universal 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 Universal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Ventures and Universal, you can compare the effects of market volatilities on Live Ventures and Universal 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 Universal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Ventures and Universal.
Diversification Opportunities for Live Ventures and Universal
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Live and Universal is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and Universal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal 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 Universal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal has no effect on the direction of Live Ventures i.e., Live Ventures and Universal go up and down completely randomly.
Pair Corralation between Live Ventures and Universal
Given the investment horizon of 90 days Live Ventures is expected to generate 2.06 times more return on investment than Universal. However, Live Ventures is 2.06 times more volatile than Universal. It trades about 0.36 of its potential returns per unit of risk. Universal is currently generating about -0.15 per unit of risk. If you would invest 694.00 in Live Ventures on January 13, 2025 and sell it today you would earn a total of 161.00 from holding Live Ventures or generate 23.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Live Ventures vs. Universal
Performance |
| Timeline |
| Live Ventures |
| Universal |
Live Ventures and Universal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Ventures and Universal
The main advantage of trading using opposite Live Ventures and Universal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Ventures position performs unexpectedly, Universal 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 Universal will offset losses from the drop in Universal'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 |
| Universal vs. Imperial Brands PLC | Universal vs. Japan Tobacco ADR | Universal vs. Philip Morris International | Universal vs. Turning Point Brands |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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