Correlation Between Marcus and LiveOne
Can any of the company-specific risk be diversified away by investing in both Marcus and LiveOne 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 Marcus and LiveOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marcus and LiveOne, you can compare the effects of market volatilities on Marcus and LiveOne 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 Marcus with a short position of LiveOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcus and LiveOne.
Diversification Opportunities for Marcus and LiveOne
Very good diversification
The 3 months correlation between Marcus and LiveOne is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Marcus and LiveOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LiveOne and Marcus 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 Marcus are associated (or correlated) with LiveOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LiveOne has no effect on the direction of Marcus i.e., Marcus and LiveOne go up and down completely randomly.
Pair Corralation between Marcus and LiveOne
Considering the 90-day investment horizon Marcus is expected to under-perform the LiveOne. But the stock apears to be less risky and, when comparing its historical volatility, Marcus is 4.51 times less risky than LiveOne. The stock trades about 0.0 of its potential returns per unit of risk. The LiveOne is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 77.00 in LiveOne on November 1, 2024 and sell it today you would earn a total of 43.00 from holding LiveOne or generate 55.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marcus vs. LiveOne
Performance |
| Timeline |
| Marcus |
| LiveOne |
Marcus and LiveOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marcus and LiveOne
The main advantage of trading using opposite Marcus and LiveOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcus position performs unexpectedly, LiveOne 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 LiveOne will offset losses from the drop in LiveOne's long position.| Marcus vs. News Corp A | Marcus vs. Liberty Media | Marcus vs. Warner Music Group | Marcus vs. Fox Corp Class |
| LiveOne vs. Reading International B | LiveOne vs. Marcus | LiveOne vs. Reading International | LiveOne vs. News Corp B |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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