Correlation Between LiveOne and Able View
Can any of the company-specific risk be diversified away by investing in both LiveOne and Able View 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 LiveOne and Able View into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LiveOne and Able View Global, you can compare the effects of market volatilities on LiveOne and Able View 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 LiveOne with a short position of Able View. Check out your portfolio center. Please also check ongoing floating volatility patterns of LiveOne and Able View.
Diversification Opportunities for LiveOne and Able View
Poor diversification
The 3 months correlation between LiveOne and Able is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding LiveOne and Able View Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Able View Global and LiveOne 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 LiveOne are associated (or correlated) with Able View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Able View Global has no effect on the direction of LiveOne i.e., LiveOne and Able View go up and down completely randomly.
Pair Corralation between LiveOne and Able View
Considering the 90-day investment horizon LiveOne is expected to generate 0.94 times more return on investment than Able View. However, LiveOne is 1.07 times less risky than Able View. It trades about 0.02 of its potential returns per unit of risk. Able View Global is currently generating about -0.06 per unit of risk. If you would invest 105.00 in LiveOne on September 2, 2024 and sell it today you would lose (5.00) from holding LiveOne or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LiveOne vs. Able View Global
Performance |
| Timeline |
| LiveOne |
| Able View Global |
LiveOne and Able View Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LiveOne and Able View
The main advantage of trading using opposite LiveOne and Able View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LiveOne position performs unexpectedly, Able View 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 Able View will offset losses from the drop in Able View's long position.| LiveOne vs. Reading International B | LiveOne vs. Marcus | LiveOne vs. Reading International | LiveOne vs. News Corp B |
| Able View vs. Mirriad Advertising plc | Able View vs. INEO Tech Corp | Able View vs. Kidoz Inc | Able View vs. Marchex |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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