Correlation Between Sea and LiveOne
Can any of the company-specific risk be diversified away by investing in both Sea 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 Sea and LiveOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sea and LiveOne, you can compare the effects of market volatilities on Sea 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 Sea with a short position of LiveOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea and LiveOne.
Diversification Opportunities for Sea and LiveOne
Pay attention - limited upside
The 3 months correlation between Sea and LiveOne is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sea and LiveOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LiveOne and Sea 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 Sea 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 Sea i.e., Sea and LiveOne go up and down completely randomly.
Pair Corralation between Sea and LiveOne
Allowing for the 90-day total investment horizon Sea is expected to generate 1.7 times less return on investment than LiveOne. But when comparing it to its historical volatility, Sea is 2.34 times less risky than LiveOne. It trades about 0.28 of its potential returns per unit of risk. LiveOne is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 73.00 in LiveOne on September 4, 2024 and sell it today you would earn a total of 22.00 from holding LiveOne or generate 30.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sea vs. LiveOne
Performance |
| Timeline |
| Sea |
| LiveOne |
Sea and LiveOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea and LiveOne
The main advantage of trading using opposite Sea and LiveOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea 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.| Sea vs. Atari SA | Sea vs. Victory Square Technologies | Sea vs. Motorsport Gaming Us | Sea vs. Alpha Esports Tech |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |