Correlation Between LiveWire and LOBO EV

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

By analyzing existing cross correlation between LiveWire Group and LOBO EV TECHNOLOGIES, you can compare the effects of market volatilities on LiveWire and LOBO EV 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 LiveWire with a short position of LOBO EV. Check out your portfolio center. Please also check ongoing floating volatility patterns of LiveWire and LOBO EV.

Diversification Opportunities for LiveWire and LOBO EV

0.9

Correlation Coefficient

LiveWire  LOBO EV

Almost no diversification

The 3 months correlation between LiveWire and LOBO is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding LiveWire Group and LOBO EV TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOBO EV TECHNOLOGIES and LiveWire 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 LiveWire Group are associated (or correlated) with LOBO EV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOBO EV TECHNOLOGIES has no effect on the direction of LiveWire i.e., LiveWire and LOBO EV go up and down completely randomly.

Pair Corralation between LiveWire and LOBO EV

Given the investment horizon of 90 days LiveWire Group is expected to under-perform the LOBO EV. In addition to that, LiveWire is 1.0 times more volatile than LOBO EV TECHNOLOGIES. It trades about -0.23 of its total potential returns per unit of risk. LOBO EV TECHNOLOGIES is currently generating about -0.17 per unit of volatility. If you would invest  188.00  in LOBO EV TECHNOLOGIES on December 28, 2024 and sell it today you would lose (81.00) from holding LOBO EV TECHNOLOGIES or give up 43.09% of portfolio value over 90 days.

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

LiveWire Group  vs.  LOBO EV TECHNOLOGIES

LiveWire Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days LiveWire Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

LOBO EV TECHNOLOGIES

Risk-Adjusted Performance

Very Weak

Over the last 90 days LOBO EV TECHNOLOGIES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental drivers remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with LiveWire and LOBO EV

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

The idea behind LiveWire Group and LOBO EV TECHNOLOGIES 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.