Correlation Between Live Ventures and Wang Lee
Can any of the company-specific risk be diversified away by investing in both Live Ventures and Wang Lee 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 Wang Lee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Ventures and Wang Lee Group,, you can compare the effects of market volatilities on Live Ventures and Wang Lee 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 Wang Lee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Ventures and Wang Lee.
Diversification Opportunities for Live Ventures and Wang Lee
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Live and Wang is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and Wang Lee Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wang Lee Group, 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 Wang Lee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wang Lee Group, has no effect on the direction of Live Ventures i.e., Live Ventures and Wang Lee go up and down completely randomly.
Pair Corralation between Live Ventures and Wang Lee
Given the investment horizon of 90 days Live Ventures is expected to under-perform the Wang Lee. But the stock apears to be less risky and, when comparing its historical volatility, Live Ventures is 3.12 times less risky than Wang Lee. The stock trades about -0.1 of its potential returns per unit of risk. The Wang Lee Group, is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 346.00 in Wang Lee Group, on August 31, 2024 and sell it today you would earn a total of 121.00 from holding Wang Lee Group, or generate 34.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Ventures vs. Wang Lee Group,
Performance |
| Timeline |
| Live Ventures |
| Wang Lee Group, |
Live Ventures and Wang Lee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Ventures and Wang Lee
The main advantage of trading using opposite Live Ventures and Wang Lee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Ventures position performs unexpectedly, Wang Lee 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 Wang Lee will offset losses from the drop in Wang Lee'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 |
| Wang Lee vs. Franklin Street Properties | Wang Lee vs. Live Ventures | Wang Lee vs. Catalent | Wang Lee vs. Merit Medical Systems |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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