Correlation Between VEON and LiveOne
Can any of the company-specific risk be diversified away by investing in both VEON 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 VEON and LiveOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VEON and LiveOne, you can compare the effects of market volatilities on VEON 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 VEON with a short position of LiveOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of VEON and LiveOne.
Diversification Opportunities for VEON and LiveOne
Pay attention - limited upside
The 3 months correlation between VEON and LiveOne is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding VEON and LiveOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LiveOne and VEON 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 VEON 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 VEON i.e., VEON and LiveOne go up and down completely randomly.
Pair Corralation between VEON and LiveOne
Given the investment horizon of 90 days VEON is expected to generate 1.21 times less return on investment than LiveOne. But when comparing it to its historical volatility, VEON is 1.93 times less risky than LiveOne. It trades about 0.07 of its potential returns per unit of risk. LiveOne is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 61.00 in LiveOne on August 24, 2024 and sell it today you would earn a total of 27.00 from holding LiveOne or generate 44.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VEON vs. LiveOne
Performance |
| Timeline |
| VEON |
| LiveOne |
VEON and LiveOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VEON and LiveOne
The main advantage of trading using opposite VEON and LiveOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VEON 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.| VEON vs. Telecom Argentina SA | VEON vs. Telkom Indonesia Tbk | VEON vs. PLDT Inc ADR | VEON vs. Telefonica Brasil SA |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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