Correlation Between Able View and LiveOne

Can any of the company-specific risk be diversified away by investing in both Able View 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 Able View and LiveOne into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Able View Global and LiveOne, you can compare the effects of market volatilities on Able View 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 Able View with a short position of LiveOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Able View and LiveOne.

Diversification Opportunities for Able View and LiveOne

-0.77

Correlation Coefficient

Able View  LiveOne

Pay attention - limited upside

The 3 months correlation between Able and LiveOne is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Able View Global and LiveOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LiveOne and Able View 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 Able View Global 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 Able View i.e., Able View and LiveOne go up and down completely randomly.

Pair Corralation between Able View and LiveOne

Given the investment horizon of 90 days Able View Global is expected to generate 1.08 times more return on investment than LiveOne. However, Able View is 1.08 times more volatile than LiveOne. It trades about 0.2 of its potential returns per unit of risk. LiveOne is currently generating about 0.17 per unit of risk. If you would invest  71.00  in Able View Global on October 9, 2024 and sell it today you would earn a total of  23.00  from holding Able View Global or generate 32.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Able View Global  vs.  LiveOne

Able View Global

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Able View Global are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady essential indicators, Able View may actually be approaching a critical reversion point that can send shares even higher in February 2025.

LiveOne

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in LiveOne are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, LiveOne displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Able View and LiveOne

The main advantage of trading using opposite Able View and LiveOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Able View 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.

The idea behind Able View Global and LiveOne pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.