Correlation Between Wayfair and Live Ventures
Can any of the company-specific risk be diversified away by investing in both Wayfair and Live Ventures 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 Wayfair and Live Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wayfair and Live Ventures, you can compare the effects of market volatilities on Wayfair and Live Ventures 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 Wayfair with a short position of Live Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wayfair and Live Ventures.
Diversification Opportunities for Wayfair and Live Ventures
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wayfair and Live is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Wayfair and Live Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Ventures and Wayfair 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 Wayfair are associated (or correlated) with Live Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Ventures has no effect on the direction of Wayfair i.e., Wayfair and Live Ventures go up and down completely randomly.
Pair Corralation between Wayfair and Live Ventures
Taking into account the 90-day investment horizon Wayfair is expected to generate 0.79 times more return on investment than Live Ventures. However, Wayfair is 1.27 times less risky than Live Ventures. It trades about 0.31 of its potential returns per unit of risk. Live Ventures is currently generating about 0.0 per unit of risk. If you would invest 4,026 in Wayfair on September 19, 2024 and sell it today you would earn a total of 1,016 from holding Wayfair or generate 25.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wayfair vs. Live Ventures
Performance |
| Timeline |
| Wayfair |
| Live Ventures |
Wayfair and Live Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wayfair and Live Ventures
The main advantage of trading using opposite Wayfair and Live Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wayfair position performs unexpectedly, Live Ventures 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 Live Ventures will offset losses from the drop in Live Ventures' long position.| Wayfair vs. Floor Decor Holdings | Wayfair vs. Live Ventures | Wayfair vs. Home Depot | Wayfair vs. Lowes Companies |
| Live Ventures vs. Arhaus Inc | Live Ventures vs. Floor Decor Holdings | Live Ventures vs. Kingfisher plc | Live Ventures vs. Haverty Furniture Companies |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |