Correlation Between Cinedigm Corp and LiveOne

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

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

Diversification Opportunities for Cinedigm Corp and LiveOne

-0.37

Correlation Coefficient

Cinedigm Corp  LiveOne

Very good diversification

The 3 months correlation between Cinedigm and LiveOne is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cinedigm Corp and LiveOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LiveOne and Cinedigm Corp 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 Cinedigm Corp are associated (or correlated) with LiveOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LiveOne has no effect on the direction of Cinedigm Corp i.e., Cinedigm Corp and LiveOne go up and down completely randomly.

Pair Corralation between Cinedigm Corp and LiveOne

If you would invest  83.00  in LiveOne on September 22, 2024 and sell it today you would earn a total of  26.00  from holding LiveOne or generate 31.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Cinedigm Corp  vs.  LiveOne

Cinedigm Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cinedigm Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Cinedigm Corp is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

LiveOne

Risk-Adjusted Performance

1 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in LiveOne are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, LiveOne may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Cinedigm Corp and LiveOne

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

The idea behind Cinedigm Corp and LiveOne 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.