Correlation Between Live Ventures and Hiru

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

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

Diversification Opportunities for Live Ventures and Hiru

0.53

Correlation Coefficient

Live Ventures  Hiru

Very weak diversification

The 3 months correlation between Live and Hiru is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and Hiru Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hiru 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 Hiru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hiru has no effect on the direction of Live Ventures i.e., Live Ventures and Hiru go up and down completely randomly.

Pair Corralation between Live Ventures and Hiru

Given the investment horizon of 90 days Live Ventures is expected to generate 0.29 times more return on investment than Hiru. However, Live Ventures is 3.46 times less risky than Hiru. It trades about -0.19 of its potential returns per unit of risk. Hiru Corporation is currently generating about -0.13 per unit of risk. If you would invest  1,030  in Live Ventures on December 20, 2024 and sell it today you would lose (320.00) from holding Live Ventures or give up 31.07% of portfolio value over 90 days.

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

Live Ventures  vs.  Hiru Corp.

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.

Hiru

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hiru Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Live Ventures and Hiru

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

The idea behind Live Ventures and Hiru Corporation 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.