Correlation Between Livewire Ergogenics and Green Cures
Can any of the company-specific risk be diversified away by investing in both Livewire Ergogenics and Green Cures 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 Livewire Ergogenics and Green Cures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Livewire Ergogenics and Green Cures Botanical, you can compare the effects of market volatilities on Livewire Ergogenics and Green Cures 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 Livewire Ergogenics with a short position of Green Cures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Livewire Ergogenics and Green Cures.
Diversification Opportunities for Livewire Ergogenics and Green Cures
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Livewire and Green is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Livewire Ergogenics and Green Cures Botanical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cures Botanical and Livewire Ergogenics 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 Livewire Ergogenics are associated (or correlated) with Green Cures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cures Botanical has no effect on the direction of Livewire Ergogenics i.e., Livewire Ergogenics and Green Cures go up and down completely randomly.
Pair Corralation between Livewire Ergogenics and Green Cures
Given the investment horizon of 90 days Livewire Ergogenics is expected to under-perform the Green Cures. But the pink sheet apears to be less risky and, when comparing its historical volatility, Livewire Ergogenics is 4.72 times less risky than Green Cures. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Green Cures Botanical is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 0.10 in Green Cures Botanical on August 31, 2024 and sell it today you would lose (0.08) from holding Green Cures Botanical or give up 80.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Livewire Ergogenics vs. Green Cures Botanical
Performance |
| Timeline |
| Livewire Ergogenics |
| Green Cures Botanical |
Livewire Ergogenics and Green Cures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Livewire Ergogenics and Green Cures
The main advantage of trading using opposite Livewire Ergogenics and Green Cures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Livewire Ergogenics position performs unexpectedly, Green Cures 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 Green Cures will offset losses from the drop in Green Cures' long position.| Livewire Ergogenics vs. Signet International Holdings | Livewire Ergogenics vs. National Beverage Corp | Livewire Ergogenics vs. PT Astra International | Livewire Ergogenics vs. Vita Coco |
| Green Cures vs. Cann American Corp | Green Cures vs. Rimrock Gold Corp | Green Cures vs. Galexxy Holdings | Green Cures vs. Indoor Harvest Corp |
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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