Correlation Between Genius Brands and LiveOne

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

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

Diversification Opportunities for Genius Brands and LiveOne

0.0

Correlation Coefficient

Genius Brands  LiveOne

Pay attention - limited upside

The 3 months correlation between Genius and LiveOne is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genius Brands International and LiveOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LiveOne and Genius Brands 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 Genius Brands International 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 Genius Brands i.e., Genius Brands and LiveOne go up and down completely randomly.

Pair Corralation between Genius Brands and LiveOne

If you would invest (100.00) in Genius Brands International on November 19, 2024 and sell it today you would earn a total of  100.00  from holding Genius Brands International or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Genius Brands International  vs.  LiveOne

Genius Brands Intern

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genius Brands International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Genius Brands is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

LiveOne

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in LiveOne are ranked lower than 6 (%) 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 Genius Brands and LiveOne

The main advantage of trading using opposite Genius Brands and LiveOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genius Brands 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 Genius Brands International 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..