Correlation Between Live Nation and Abrdn Property
Can any of the company-specific risk be diversified away by investing in both Live Nation and Abrdn Property 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 Abrdn Property 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 abrdn Property Income, you can compare the effects of market volatilities on Live Nation and Abrdn Property 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 Abrdn Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and Abrdn Property.
Diversification Opportunities for Live Nation and Abrdn Property
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Live and Abrdn is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment and abrdn Property Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Property Income 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 Abrdn Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Property Income has no effect on the direction of Live Nation i.e., Live Nation and Abrdn Property go up and down completely randomly.
Pair Corralation between Live Nation and Abrdn Property
Assuming the 90 days trading horizon Live Nation Entertainment is expected to generate 0.63 times more return on investment than Abrdn Property. However, Live Nation Entertainment is 1.58 times less risky than Abrdn Property. It trades about 0.29 of its potential returns per unit of risk. abrdn Property Income is currently generating about -0.03 per unit of risk. If you would invest 13,122 in Live Nation Entertainment on October 29, 2024 and sell it today you would earn a total of 851.00 from holding Live Nation Entertainment or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Nation Entertainment vs. abrdn Property Income
Performance |
| Timeline |
| Live Nation Entertainment |
| abrdn Property Income |
Live Nation and Abrdn Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Nation and Abrdn Property
The main advantage of trading using opposite Live Nation and Abrdn Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, Abrdn Property 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 Abrdn Property will offset losses from the drop in Abrdn Property's long position.| Live Nation vs. Canadian General Investments | Live Nation vs. United Utilities Group | Live Nation vs. Westlake Chemical Corp | Live Nation vs. Geely Automobile Holdings |
| Abrdn Property vs. Gaming Realms plc | Abrdn Property vs. Roper Technologies | Abrdn Property vs. Sovereign Metals | Abrdn Property vs. Symphony Environmental Technologies |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |