Correlation Between LiveOne and Network Media
Can any of the company-specific risk be diversified away by investing in both LiveOne and Network Media 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 Network Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LiveOne and Network Media Group, you can compare the effects of market volatilities on LiveOne and Network Media 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 Network Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of LiveOne and Network Media.
Diversification Opportunities for LiveOne and Network Media
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LiveOne and Network is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding LiveOne and Network Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Network Media Group 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 Network Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Network Media Group has no effect on the direction of LiveOne i.e., LiveOne and Network Media go up and down completely randomly.
Pair Corralation between LiveOne and Network Media
Considering the 90-day investment horizon LiveOne is expected to generate 0.72 times more return on investment than Network Media. However, LiveOne is 1.39 times less risky than Network Media. It trades about 0.2 of its potential returns per unit of risk. Network Media Group is currently generating about -0.08 per unit of risk. If you would invest 77.00 in LiveOne on September 2, 2024 and sell it today you would earn a total of 23.00 from holding LiveOne or generate 29.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
LiveOne vs. Network Media Group
Performance |
| Timeline |
| LiveOne |
| Network Media Group |
LiveOne and Network Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LiveOne and Network Media
The main advantage of trading using opposite LiveOne and Network Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LiveOne position performs unexpectedly, Network Media 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 Network Media will offset losses from the drop in Network Media's long position.| LiveOne vs. Reading International B | LiveOne vs. Marcus | LiveOne vs. Reading International | LiveOne vs. News Corp B |
| Network Media vs. New Wave Holdings | Network Media vs. ZoomerMedia Limited | Network Media vs. OverActive Media Corp | Network Media vs. Celtic plc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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