Correlation Between Vimeo and LivePerson

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

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

Diversification Opportunities for Vimeo and LivePerson

-0.4

Correlation Coefficient

Vimeo  LivePerson

Very good diversification

The 3 months correlation between Vimeo and LivePerson is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Vimeo Inc and LivePerson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LivePerson and Vimeo 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 Vimeo Inc are associated (or correlated) with LivePerson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LivePerson has no effect on the direction of Vimeo i.e., Vimeo and LivePerson go up and down completely randomly.

Pair Corralation between Vimeo and LivePerson

Given the investment horizon of 90 days Vimeo Inc is expected to under-perform the LivePerson. But the stock apears to be less risky and, when comparing its historical volatility, Vimeo Inc is 2.87 times less risky than LivePerson. The stock trades about -0.2 of its potential returns per unit of risk. The LivePerson is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  86.00  in LivePerson on May 6, 2025 and sell it today you would lose (2.00) from holding LivePerson or give up 2.33% of portfolio value over 90 days.

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

Vimeo Inc  vs.  LivePerson

Vimeo Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vimeo Inc 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 technical and fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

LivePerson

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in LivePerson are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, LivePerson is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Vimeo and LivePerson

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

The idea behind Vimeo Inc and LivePerson 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.