Correlation Between Live Ventures and Vera Bradley
Can any of the company-specific risk be diversified away by investing in both Live Ventures and Vera Bradley 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 Vera Bradley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Ventures and Vera Bradley, you can compare the effects of market volatilities on Live Ventures and Vera Bradley 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 Vera Bradley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Ventures and Vera Bradley.
Diversification Opportunities for Live Ventures and Vera Bradley
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Live and Vera is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and Vera Bradley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vera Bradley 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 Vera Bradley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vera Bradley has no effect on the direction of Live Ventures i.e., Live Ventures and Vera Bradley go up and down completely randomly.
Pair Corralation between Live Ventures and Vera Bradley
Given the investment horizon of 90 days Live Ventures is expected to under-perform the Vera Bradley. In addition to that, Live Ventures is 1.89 times more volatile than Vera Bradley. It trades about -0.07 of its total potential returns per unit of risk. Vera Bradley is currently generating about 0.33 per unit of volatility. If you would invest 507.00 in Vera Bradley on September 3, 2024 and sell it today you would earn a total of 78.00 from holding Vera Bradley or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Ventures vs. Vera Bradley
Performance |
| Timeline |
| Live Ventures |
| Vera Bradley |
Live Ventures and Vera Bradley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Ventures and Vera Bradley
The main advantage of trading using opposite Live Ventures and Vera Bradley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Ventures position performs unexpectedly, Vera Bradley 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 Vera Bradley will offset losses from the drop in Vera Bradley'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 |
| Vera Bradley vs. Rocky Brands | Vera Bradley vs. Steven Madden | Vera Bradley vs. Wolverine World Wide | Vera Bradley vs. Caleres |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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