Correlation Between Venus Concept and LivaNova PLC

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

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

Diversification Opportunities for Venus Concept and LivaNova PLC

0.18

Correlation Coefficient

Venus Concept  LivaNova PLC

Average diversification

The 3 months correlation between Venus and LivaNova is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Venus Concept and LivaNova PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LivaNova PLC and Venus Concept 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 Venus Concept are associated (or correlated) with LivaNova PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LivaNova PLC has no effect on the direction of Venus Concept i.e., Venus Concept and LivaNova PLC go up and down completely randomly.

Pair Corralation between Venus Concept and LivaNova PLC

Given the investment horizon of 90 days Venus Concept is expected to generate 3.39 times more return on investment than LivaNova PLC. However, Venus Concept is 3.39 times more volatile than LivaNova PLC. It trades about 0.04 of its potential returns per unit of risk. LivaNova PLC is currently generating about -0.02 per unit of risk. If you would invest  242.00  in Venus Concept on May 8, 2025 and sell it today you would earn a total of  7.00  from holding Venus Concept or generate 2.89% return on investment over 90 days.

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

Venus Concept  vs.  LivaNova PLC

Venus Concept

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Venus Concept are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Venus Concept displayed solid returns over the last few months and may actually be approaching a breakup point.

LivaNova PLC

Risk-Adjusted Performance

Weakest

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

Pair Trading with Venus Concept and LivaNova PLC

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

The idea behind Venus Concept and LivaNova PLC 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.