Correlation Between LiveOne and Gray Television
Can any of the company-specific risk be diversified away by investing in both LiveOne and Gray Television 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 Gray Television into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LiveOne and Gray Television, you can compare the effects of market volatilities on LiveOne and Gray Television 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 Gray Television. Check out your portfolio center. Please also check ongoing floating volatility patterns of LiveOne and Gray Television.
Diversification Opportunities for LiveOne and Gray Television
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LiveOne and Gray is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding LiveOne and Gray Television in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gray Television 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 Gray Television. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gray Television has no effect on the direction of LiveOne i.e., LiveOne and Gray Television go up and down completely randomly.
Pair Corralation between LiveOne and Gray Television
Considering the 90-day investment horizon LiveOne is expected to generate 0.99 times more return on investment than Gray Television. However, LiveOne is 1.01 times less risky than Gray Television. It trades about 0.11 of its potential returns per unit of risk. Gray Television is currently generating about 0.03 per unit of risk. If you would invest 73.00 in LiveOne on October 31, 2024 and sell it today you would earn a total of 42.00 from holding LiveOne or generate 57.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LiveOne vs. Gray Television
Performance |
| Timeline |
| LiveOne |
| Gray Television |
LiveOne and Gray Television Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LiveOne and Gray Television
The main advantage of trading using opposite LiveOne and Gray Television positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LiveOne position performs unexpectedly, Gray Television 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 Gray Television will offset losses from the drop in Gray Television's long position.| LiveOne vs. Reading International B | LiveOne vs. Marcus | LiveOne vs. Reading International | LiveOne vs. News Corp B |
| Gray Television vs. Thai Beverage PCL | Gray Television vs. Oatly Group AB | Gray Television vs. International Consolidated Airlines | Gray Television vs. Air Transport Services |
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.
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