Correlation Between Live Ventures and PVH Corp

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

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

Diversification Opportunities for Live Ventures and PVH Corp

0.85

Correlation Coefficient

Live Ventures  PVH Corp

Very poor diversification

The 3 months correlation between Live and PVH is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures and PVH Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PVH Corp and Live Ventures 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 Live Ventures are associated (or correlated) with PVH Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PVH Corp has no effect on the direction of Live Ventures i.e., Live Ventures and PVH Corp go up and down completely randomly.

Pair Corralation between Live Ventures and PVH Corp

Given the investment horizon of 90 days Live Ventures is expected to generate 4.24 times more return on investment than PVH Corp. However, Live Ventures is 4.24 times more volatile than PVH Corp. It trades about 0.07 of its potential returns per unit of risk. PVH Corp is currently generating about 0.02 per unit of risk. If you would invest  1,345  in Live Ventures on May 6, 2025 and sell it today you would earn a total of  212.00  from holding Live Ventures or generate 15.76% return on investment over 90 days.

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

Live Ventures  vs.  PVH Corp

Live Ventures

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Live Ventures are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Live Ventures exhibited solid returns over the last few months and may actually be approaching a breakup point.

PVH Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PVH Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, PVH Corp is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Live Ventures and PVH Corp

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

The idea behind Live Ventures and PVH Corp 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.