Correlation Between Live Nation and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Live Nation and Fidelity National 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 Live Nation and Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Nation Entertainment and Fidelity National Information, you can compare the effects of market volatilities on Live Nation and Fidelity National 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 Live Nation with a short position of Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and Fidelity National.
Diversification Opportunities for Live Nation and Fidelity National
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Live and Fidelity is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National and Live Nation 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 Live Nation Entertainment are associated (or correlated) with Fidelity National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity National has no effect on the direction of Live Nation i.e., Live Nation and Fidelity National go up and down completely randomly.
Pair Corralation between Live Nation and Fidelity National
Assuming the 90 days trading horizon Live Nation Entertainment is expected to generate 1.37 times more return on investment than Fidelity National. However, Live Nation is 1.37 times more volatile than Fidelity National Information. It trades about -0.16 of its potential returns per unit of risk. Fidelity National Information is currently generating about -0.48 per unit of risk. If you would invest 13,502 in Live Nation Entertainment on October 14, 2024 and sell it today you would lose (514.00) from holding Live Nation Entertainment or give up 3.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Nation Entertainment vs. Fidelity National Information
Performance |
| Timeline |
| Live Nation Entertainment |
| Fidelity National |
Live Nation and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Nation and Fidelity National
The main advantage of trading using opposite Live Nation and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, Fidelity National 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 Fidelity National will offset losses from the drop in Fidelity National's long position.| Live Nation vs. Lundin Mining Corp | Live Nation vs. Metro Bank PLC | Live Nation vs. Hochschild Mining plc | Live Nation vs. Discover Financial Services |
| Fidelity National vs. Zinc Media Group | Fidelity National vs. Naturhouse Health SA | Fidelity National vs. Live Nation Entertainment | Fidelity National vs. Optima Health plc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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