Correlation Between Live Ventures and BCB Bancorp

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

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

Diversification Opportunities for Live Ventures and BCB Bancorp

-0.49

Correlation Coefficient

Live Ventures  BCB Bancorp

Very good diversification

The 3 months correlation between Live and BCB is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and BCB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCB Bancorp 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 BCB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCB Bancorp has no effect on the direction of Live Ventures i.e., Live Ventures and BCB Bancorp go up and down completely randomly.

Pair Corralation between Live Ventures and BCB Bancorp

Given the investment horizon of 90 days Live Ventures is expected to generate 2.26 times more return on investment than BCB Bancorp. However, Live Ventures is 2.26 times more volatile than BCB Bancorp. It trades about 0.06 of its potential returns per unit of risk. BCB Bancorp is currently generating about -0.24 per unit of risk. If you would invest  990.00  in Live Ventures on September 24, 2024 and sell it today you would earn a total of  40.00  from holding Live Ventures or generate 4.04% return on investment over 90 days.

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

Live Ventures  vs.  BCB Bancorp

Live Ventures

Risk-Adjusted Performance

0 of 100

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 inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

BCB Bancorp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BCB Bancorp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental drivers, BCB Bancorp is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Live Ventures and BCB Bancorp

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

The idea behind Live Ventures and BCB Bancorp 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.