Correlation Between Live Ventures and Amer Sports,

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

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

Diversification Opportunities for Live Ventures and Amer Sports,

0.44

Correlation Coefficient

Live Ventures  Amer Sports,

Very weak diversification

The 3 months correlation between Live and Amer is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, and Live 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 Live Ventures are associated (or correlated) with Amer Sports,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Sports, has no effect on the direction of Live Ventures i.e., Live Ventures and Amer Sports, go up and down completely randomly.

Pair Corralation between Live Ventures and Amer Sports,

Given the investment horizon of 90 days Live Ventures is expected to under-perform the Amer Sports,. In addition to that, Live Ventures is 1.08 times more volatile than Amer Sports,. It trades about -0.18 of its total potential returns per unit of risk. Amer Sports, is currently generating about 0.03 per unit of volatility. If you would invest  2,879  in Amer Sports, on December 26, 2024 and sell it today you would earn a total of  68.00  from holding Amer Sports, or generate 2.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.33%
Values	Daily Returns

Live Ventures  vs.  Amer Sports,

Live Ventures

Risk-Adjusted Performance

Very Weak

Over the last 90 days Live Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Amer Sports,

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Amer Sports, are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Amer Sports, is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Live Ventures and Amer Sports,

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

The idea behind Live Ventures and Amer Sports, 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.