Correlation Between Live Ventures and Shengkai Innovations

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Live Ventures and Shengkai Innovations 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 Shengkai Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Ventures and Shengkai Innovations, you can compare the effects of market volatilities on Live Ventures and Shengkai Innovations 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 Shengkai Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Ventures and Shengkai Innovations.

Diversification Opportunities for Live Ventures and Shengkai Innovations

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Live and Shengkai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and Shengkai Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengkai Innovations 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 Shengkai Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengkai Innovations has no effect on the direction of Live Ventures i.e., Live Ventures and Shengkai Innovations go up and down completely randomly.

Pair Corralation between Live Ventures and Shengkai Innovations

If you would invest  0.01  in Shengkai Innovations on September 14, 2024 and sell it today you would earn a total of  0.00  from holding Shengkai Innovations or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.4%
ValuesDaily Returns

Live Ventures  vs.  Shengkai Innovations

 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.
Shengkai Innovations 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Shengkai Innovations has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable essential indicators, Shengkai Innovations is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Live Ventures and Shengkai Innovations Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Live Ventures and Shengkai Innovations

The main advantage of trading using opposite Live Ventures and Shengkai Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Ventures position performs unexpectedly, Shengkai Innovations 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 Shengkai Innovations will offset losses from the drop in Shengkai Innovations' long position.
The idea behind Live Ventures and Shengkai Innovations 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.
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

Other Complementary Tools

Fundamental Analysis
View fundamental data based on most recent published financial statements
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated