Correlation Between Liveramp Holdings and Nutanix

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

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

Diversification Opportunities for Liveramp Holdings and Nutanix

-0.32

Correlation Coefficient

Liveramp Holdings  Nutanix

Very good diversification

The 3 months correlation between Liveramp and Nutanix is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Liveramp Holdings and Nutanix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutanix and Liveramp Holdings 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 Liveramp Holdings are associated (or correlated) with Nutanix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutanix has no effect on the direction of Liveramp Holdings i.e., Liveramp Holdings and Nutanix go up and down completely randomly.

Pair Corralation between Liveramp Holdings and Nutanix

Given the investment horizon of 90 days Liveramp Holdings is expected to generate 1.78 times more return on investment than Nutanix. However, Liveramp Holdings is 1.78 times more volatile than Nutanix. It trades about 0.11 of its potential returns per unit of risk. Nutanix is currently generating about 0.01 per unit of risk. If you would invest  2,697  in Liveramp Holdings on May 7, 2025 and sell it today you would earn a total of  560.00  from holding Liveramp Holdings or generate 20.76% return on investment over 90 days.

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

Liveramp Holdings  vs.  Nutanix

Liveramp Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Liveramp Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak primary indicators, Liveramp Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Nutanix

Risk-Adjusted Performance

Weakest

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

Pair Trading with Liveramp Holdings and Nutanix

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

The idea behind Liveramp Holdings and Nutanix 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.