Correlation Between Live Nation and PT Global
Can any of the company-specific risk be diversified away by investing in both Live Nation and PT Global 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 PT Global 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 PT Global Mediacom, you can compare the effects of market volatilities on Live Nation and PT Global 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 PT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and PT Global.
Diversification Opportunities for Live Nation and PT Global
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Live and 06L is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment and PT Global Mediacom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Global Mediacom 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 PT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Global Mediacom has no effect on the direction of Live Nation i.e., Live Nation and PT Global go up and down completely randomly.
Pair Corralation between Live Nation and PT Global
If you would invest 10,770 in Live Nation Entertainment on August 29, 2024 and sell it today you would earn a total of 2,795 from holding Live Nation Entertainment or generate 25.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Nation Entertainment vs. PT Global Mediacom
Performance |
| Timeline |
| Live Nation Entertainment |
| PT Global Mediacom |
Live Nation and PT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Nation and PT Global
The main advantage of trading using opposite Live Nation and PT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, PT Global 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 PT Global will offset losses from the drop in PT Global's long position.| Live Nation vs. Superior Plus Corp | Live Nation vs. NMI Holdings | Live Nation vs. SIVERS SEMICONDUCTORS AB | Live Nation vs. Talanx AG |
| PT Global vs. Highlight Communications AG | PT Global vs. INTERSHOP Communications Aktiengesellschaft | PT Global vs. RETAIL FOOD GROUP | PT Global vs. MTI WIRELESS EDGE |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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