Correlation Between Bill and Live Ventures

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

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

Diversification Opportunities for Bill and Live Ventures

-0.72

Correlation Coefficient

Bill  Live Ventures

Pay attention - limited upside

The 3 months correlation between Bill and Live is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bill Com Holdings and Live Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Ventures and Bill 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 Bill Com Holdings are associated (or correlated) with Live Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Ventures has no effect on the direction of Bill i.e., Bill and Live Ventures go up and down completely randomly.

Pair Corralation between Bill and Live Ventures

Given the investment horizon of 90 days Bill Com Holdings is expected to generate 0.89 times more return on investment than Live Ventures. However, Bill Com Holdings is 1.13 times less risky than Live Ventures. It trades about 0.26 of its potential returns per unit of risk. Live Ventures is currently generating about -0.15 per unit of risk. If you would invest  5,166  in Bill Com Holdings on September 18, 2024 and sell it today you would earn a total of  3,631  from holding Bill Com Holdings or generate 70.29% return on investment over 90 days.

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

Bill Com Holdings  vs.  Live Ventures

Bill Com Holdings

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bill Com Holdings are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile essential indicators, Bill disclosed solid returns over the last few months and may actually be approaching a breakup point.

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 uncertain 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.

Pair Trading with Bill and Live Ventures

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

The idea behind Bill Com Holdings and Live Ventures 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.