Correlation Between Lumen Technologies, and Livetech

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

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

Diversification Opportunities for Lumen Technologies, and Livetech

0.56

Correlation Coefficient

Lumen Technologies,  Livetech

Very weak diversification

The 3 months correlation between Lumen and Livetech is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lumen Technologies, and Livetech da Bahia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Livetech da Bahia and Lumen Technologies, 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 Lumen Technologies, are associated (or correlated) with Livetech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Livetech da Bahia has no effect on the direction of Lumen Technologies, i.e., Lumen Technologies, and Livetech go up and down completely randomly.

Pair Corralation between Lumen Technologies, and Livetech

Assuming the 90 days trading horizon Lumen Technologies, is expected to generate 1.01 times less return on investment than Livetech. In addition to that, Lumen Technologies, is 1.13 times more volatile than Livetech da Bahia. It trades about 0.13 of its total potential returns per unit of risk. Livetech da Bahia is currently generating about 0.15 per unit of volatility. If you would invest  276.00  in Livetech da Bahia on April 25, 2025 and sell it today you would earn a total of  89.00  from holding Livetech da Bahia or generate 32.25% return on investment over 90 days.

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

Lumen Technologies,  vs.  Livetech da Bahia

Lumen Technologies,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lumen Technologies, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, Lumen Technologies, sustained solid returns over the last few months and may actually be approaching a breakup point.

Livetech da Bahia

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Livetech da Bahia are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Livetech unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lumen Technologies, and Livetech

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

The idea behind Lumen Technologies, and Livetech da Bahia 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.