Correlation Between Live Ventures and Leatt Corp

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

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

Diversification Opportunities for Live Ventures and Leatt Corp

-0.04

Correlation Coefficient

Live Ventures  Leatt Corp

Good diversification

The 3 months correlation between Live and Leatt is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and Leatt Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leatt Corp 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 Leatt Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leatt Corp has no effect on the direction of Live Ventures i.e., Live Ventures and Leatt Corp go up and down completely randomly.

Pair Corralation between Live Ventures and Leatt Corp

Given the investment horizon of 90 days Live Ventures is expected to under-perform the Leatt Corp. In addition to that, Live Ventures is 2.72 times more volatile than Leatt Corp. It trades about -0.17 of its total potential returns per unit of risk. Leatt Corp is currently generating about -0.09 per unit of volatility. If you would invest  715.00  in Leatt Corp on December 27, 2024 and sell it today you would lose (46.00) from holding Leatt Corp or give up 6.43% of portfolio value over 90 days.

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

Live Ventures  vs.  Leatt 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.

Leatt Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Leatt Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Live Ventures and Leatt Corp

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

The idea behind Live Ventures and Leatt Corp 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.