Correlation Between Gannett and LiveOne

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

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

Diversification Opportunities for Gannett and LiveOne

-0.02

Correlation Coefficient

Gannett  LiveOne

Good diversification

The 3 months correlation between Gannett and LiveOne is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Gannett Co and LiveOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LiveOne and Gannett 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 Gannett Co 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 Gannett i.e., Gannett and LiveOne go up and down completely randomly.

Pair Corralation between Gannett and LiveOne

Considering the 90-day investment horizon Gannett Co is expected to generate 0.46 times more return on investment than LiveOne. However, Gannett Co is 2.17 times less risky than LiveOne. It trades about 0.17 of its potential returns per unit of risk. LiveOne is currently generating about 0.01 per unit of risk. If you would invest  315.00  in Gannett Co on May 6, 2025 and sell it today you would earn a total of  87.00  from holding Gannett Co or generate 27.62% return on investment over 90 days.

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

Gannett Co  vs.  LiveOne

Gannett

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gannett Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating fundamental indicators, Gannett demonstrated solid returns over the last few months and may actually be approaching a breakup point.

LiveOne

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Gannett and LiveOne

The main advantage of trading using opposite Gannett and LiveOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gannett 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 Gannett Co 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.

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.