Correlation Between CuraScientific and Livewire Ergogenics

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

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

Diversification Opportunities for CuraScientific and Livewire Ergogenics

0.2

Correlation Coefficient

CuraScientific  Livewire Ergogenics

Modest diversification

The 3 months correlation between CuraScientific and Livewire is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding CuraScientific and Livewire Ergogenics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Livewire Ergogenics and CuraScientific 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 CuraScientific are associated (or correlated) with Livewire Ergogenics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Livewire Ergogenics has no effect on the direction of CuraScientific i.e., CuraScientific and Livewire Ergogenics go up and down completely randomly.

Pair Corralation between CuraScientific and Livewire Ergogenics

If you would invest  1.19  in CuraScientific on September 13, 2024 and sell it today you would earn a total of  0.00  from holding CuraScientific or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

CuraScientific  vs.  Livewire Ergogenics

CuraScientific

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CuraScientific has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, CuraScientific is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Livewire Ergogenics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Livewire Ergogenics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with CuraScientific and Livewire Ergogenics

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

The idea behind CuraScientific and Livewire Ergogenics 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.