Correlation Between LiveWire and Foresight Autonomous

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

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

Diversification Opportunities for LiveWire and Foresight Autonomous

-0.6

Correlation Coefficient

LiveWire  Foresight Autonomous

Excellent diversification

The 3 months correlation between LiveWire and Foresight is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding LiveWire Group and Foresight Autonomous Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foresight Autonomous and LiveWire 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 LiveWire Group are associated (or correlated) with Foresight Autonomous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foresight Autonomous has no effect on the direction of LiveWire i.e., LiveWire and Foresight Autonomous go up and down completely randomly.

Pair Corralation between LiveWire and Foresight Autonomous

Given the investment horizon of 90 days LiveWire Group is expected to generate 6.29 times more return on investment than Foresight Autonomous. However, LiveWire is 6.29 times more volatile than Foresight Autonomous Holdings. It trades about 0.16 of its potential returns per unit of risk. Foresight Autonomous Holdings is currently generating about -0.22 per unit of risk. If you would invest  106.00  in LiveWire Group on May 7, 2025 and sell it today you would earn a total of  227.00  from holding LiveWire Group or generate 214.15% return on investment over 90 days.

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

LiveWire Group  vs.  Foresight Autonomous Holdings

LiveWire Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in LiveWire Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, LiveWire reported solid returns over the last few months and may actually be approaching a breakup point.

Foresight Autonomous

Risk-Adjusted Performance

Very Weak

Over the last 90 days Foresight Autonomous Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with LiveWire and Foresight Autonomous

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

The idea behind LiveWire Group and Foresight Autonomous Holdings 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.