Correlation Between Live Current and Deere

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

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

Diversification Opportunities for Live Current and Deere

0.0

Correlation Coefficient

Live Current  Deere

Pay attention - limited upside

The 3 months correlation between Live and Deere is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Live Current Media and Deere Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deere Company and Live Current 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 Live Current Media are associated (or correlated) with Deere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deere Company has no effect on the direction of Live Current i.e., Live Current and Deere go up and down completely randomly.

Pair Corralation between Live Current and Deere

If you would invest  39,329  in Deere Company on September 13, 2024 and sell it today you would earn a total of  5,474  from holding Deere Company or generate 13.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	74.6%
Values	Daily Returns

Live Current Media  vs.  Deere Company

Live Current Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Live Current Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Live Current is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Deere Company

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Deere Company are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Deere exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Live Current and Deere

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

The idea behind Live Current Media and Deere Company 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.