Correlation Between Live Nation and Cboe UK
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By analyzing existing cross correlation between Live Nation Entertainment and Cboe UK Consumer, you can compare the effects of market volatilities on Live Nation and Cboe UK 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 Cboe UK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and Cboe UK.
Diversification Opportunities for Live Nation and Cboe UK
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Live and Cboe is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment and Cboe UK Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cboe UK Consumer 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 Cboe UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cboe UK Consumer has no effect on the direction of Live Nation i.e., Live Nation and Cboe UK go up and down completely randomly.
Pair Corralation between Live Nation and Cboe UK
Assuming the 90 days trading horizon Live Nation Entertainment is expected to generate 1.78 times more return on investment than Cboe UK. However, Live Nation is 1.78 times more volatile than Cboe UK Consumer. It trades about -0.16 of its potential returns per unit of risk. Cboe UK Consumer is currently generating about -0.33 per unit of risk. If you would invest 13,520 in Live Nation Entertainment on October 12, 2024 and sell it today you would lose (532.00) from holding Live Nation Entertainment or give up 3.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Live Nation Entertainment vs. Cboe UK Consumer
Performance |
| Timeline |
Live Nation and Cboe UK Volatility Contrast
Predicted Return Density |
| Returns |
Live Nation Entertainment
Pair trading matchups for Live Nation
Cboe UK Consumer
Pair trading matchups for Cboe UK
Pair Trading with Live Nation and Cboe UK
The main advantage of trading using opposite Live Nation and Cboe UK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, Cboe UK 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 Cboe UK will offset losses from the drop in Cboe UK's long position.| Live Nation vs. Software Circle plc | Live Nation vs. Scandic Hotels Group | Live Nation vs. Sabien Technology Group | Live Nation vs. Melia Hotels |
| Cboe UK vs. Live Nation Entertainment | Cboe UK vs. JD Sports Fashion | Cboe UK vs. Raymond James Financial | Cboe UK vs. TBC Bank Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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