Correlation Between Shenandoah Telecommunicatio and Live Ventures

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

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

Diversification Opportunities for Shenandoah Telecommunicatio and Live Ventures

-0.45

Correlation Coefficient

Shenandoah Telecommunicatio  Live Ventures

Very good diversification

The 3 months correlation between Shenandoah and Live is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shenandoah Telecommunications and Live Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Ventures and Shenandoah Telecommunicatio 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 Shenandoah Telecommunications Co are associated (or correlated) with Live Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Ventures has no effect on the direction of Shenandoah Telecommunicatio i.e., Shenandoah Telecommunicatio and Live Ventures go up and down completely randomly.

Pair Corralation between Shenandoah Telecommunicatio and Live Ventures

Given the investment horizon of 90 days Shenandoah Telecommunicatio is expected to generate 4.32 times less return on investment than Live Ventures. But when comparing it to its historical volatility, Shenandoah Telecommunications Co is 5.6 times less risky than Live Ventures. It trades about 0.08 of its potential returns per unit of risk. Live Ventures is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,451  in Live Ventures on May 7, 2025 and sell it today you would earn a total of  141.00  from holding Live Ventures or generate 9.72% return on investment over 90 days.

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

Shenandoah Telecommunications   vs.  Live Ventures

Shenandoah Telecommunicatio

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Shenandoah Telecommunications Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, Shenandoah Telecommunicatio displayed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Shenandoah Telecommunicatio and Live Ventures

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

The idea behind Shenandoah Telecommunications Co and Live Ventures 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.