Correlation Between Liveramp Holdings and CiT
Can any of the company-specific risk be diversified away by investing in both Liveramp Holdings and CiT 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 Liveramp Holdings and CiT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liveramp Holdings and CiT Inc, you can compare the effects of market volatilities on Liveramp Holdings and CiT 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 Liveramp Holdings with a short position of CiT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liveramp Holdings and CiT.
Diversification Opportunities for Liveramp Holdings and CiT
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liveramp and CiT is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Liveramp Holdings and CiT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CiT Inc and Liveramp Holdings 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 Liveramp Holdings are associated (or correlated) with CiT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CiT Inc has no effect on the direction of Liveramp Holdings i.e., Liveramp Holdings and CiT go up and down completely randomly.
Pair Corralation between Liveramp Holdings and CiT
Given the investment horizon of 90 days Liveramp Holdings is expected to generate 0.68 times more return on investment than CiT. However, Liveramp Holdings is 1.47 times less risky than CiT. It trades about 0.49 of its potential returns per unit of risk. CiT Inc is currently generating about -0.01 per unit of risk. If you would invest 2,369 in Liveramp Holdings on August 24, 2024 and sell it today you would earn a total of 702.00 from holding Liveramp Holdings or generate 29.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liveramp Holdings vs. CiT Inc
Performance |
| Timeline |
| Liveramp Holdings |
| CiT Inc |
Liveramp Holdings and CiT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liveramp Holdings and CiT
The main advantage of trading using opposite Liveramp Holdings and CiT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liveramp Holdings position performs unexpectedly, CiT 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 CiT will offset losses from the drop in CiT's long position.| Liveramp Holdings vs. PagSeguro Digital | Liveramp Holdings vs. Endava | Liveramp Holdings vs. Nutanix | Liveramp Holdings vs. Yext Inc |
| CiT vs. Global Blue Group | CiT vs. EverCommerce | CiT vs. CSG Systems International | CiT vs. Consensus Cloud Solutions |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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