Correlation Between Newegg Commerce and Liquidity Services
Can any of the company-specific risk be diversified away by investing in both Newegg Commerce and Liquidity Services 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 Newegg Commerce and Liquidity Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newegg Commerce and Liquidity Services, you can compare the effects of market volatilities on Newegg Commerce and Liquidity Services 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 Newegg Commerce with a short position of Liquidity Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newegg Commerce and Liquidity Services.
Diversification Opportunities for Newegg Commerce and Liquidity Services
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Newegg and Liquidity is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Newegg Commerce and Liquidity Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liquidity Services and Newegg Commerce 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 Newegg Commerce are associated (or correlated) with Liquidity Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liquidity Services has no effect on the direction of Newegg Commerce i.e., Newegg Commerce and Liquidity Services go up and down completely randomly.
Pair Corralation between Newegg Commerce and Liquidity Services
Given the investment horizon of 90 days Newegg Commerce is expected to generate 1.4 times more return on investment than Liquidity Services. However, Newegg Commerce is 1.4 times more volatile than Liquidity Services. It trades about 0.02 of its potential returns per unit of risk. Liquidity Services is currently generating about -0.03 per unit of risk. If you would invest 45.00 in Newegg Commerce on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Newegg Commerce or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newegg Commerce vs. Liquidity Services
Performance |
| Timeline |
| Newegg Commerce |
| Liquidity Services |
Newegg Commerce and Liquidity Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newegg Commerce and Liquidity Services
The main advantage of trading using opposite Newegg Commerce and Liquidity Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newegg Commerce position performs unexpectedly, Liquidity Services 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 Liquidity Services will offset losses from the drop in Liquidity Services' long position.| Newegg Commerce vs. Jeffs Brands | Newegg Commerce vs. Jumia Technologies AG | Newegg Commerce vs. Kidpik Corp | Newegg Commerce vs. Qurate Retail Series |
| Liquidity Services vs. Qurate Retail Series | Liquidity Services vs. Qurate Retail | Liquidity Services vs. Dada Nexus | Liquidity Services vs. Natural Health Trend |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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