Correlation Between Integrated Ventures and LifeSpeak

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

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

Diversification Opportunities for Integrated Ventures and LifeSpeak

0.06

Correlation Coefficient

Integrated Ventures  LifeSpeak

Significant diversification

The 3 months correlation between Integrated and LifeSpeak is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Ventures and LifeSpeak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LifeSpeak and Integrated Ventures 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 Integrated Ventures are associated (or correlated) with LifeSpeak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LifeSpeak has no effect on the direction of Integrated Ventures i.e., Integrated Ventures and LifeSpeak go up and down completely randomly.

Pair Corralation between Integrated Ventures and LifeSpeak

Given the investment horizon of 90 days Integrated Ventures is expected to generate 1.01 times more return on investment than LifeSpeak. However, Integrated Ventures is 1.01 times more volatile than LifeSpeak. It trades about 0.11 of its potential returns per unit of risk. LifeSpeak is currently generating about -0.03 per unit of risk. If you would invest  98.00  in Integrated Ventures on September 14, 2024 and sell it today you would earn a total of  34.00  from holding Integrated Ventures or generate 34.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Integrated Ventures  vs.  LifeSpeak

Integrated Ventures

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Integrated Ventures are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Integrated Ventures showed solid returns over the last few months and may actually be approaching a breakup point.

LifeSpeak

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LifeSpeak has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward-looking signals remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Integrated Ventures and LifeSpeak

The main advantage of trading using opposite Integrated Ventures and LifeSpeak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Ventures position performs unexpectedly, LifeSpeak 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 LifeSpeak will offset losses from the drop in LifeSpeak's long position.

The idea behind Integrated Ventures and LifeSpeak 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.

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.