Correlation Between Live Nation and WAGNERS HOLDING
Can any of the company-specific risk be diversified away by investing in both Live Nation and WAGNERS HOLDING 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 WAGNERS HOLDING 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 WAGNERS HOLDING LTD, you can compare the effects of market volatilities on Live Nation and WAGNERS HOLDING 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 WAGNERS HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and WAGNERS HOLDING.
Diversification Opportunities for Live Nation and WAGNERS HOLDING
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Live and WAGNERS is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment and WAGNERS HOLDING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WAGNERS HOLDING LTD 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 WAGNERS HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WAGNERS HOLDING LTD has no effect on the direction of Live Nation i.e., Live Nation and WAGNERS HOLDING go up and down completely randomly.
Pair Corralation between Live Nation and WAGNERS HOLDING
Assuming the 90 days horizon Live Nation is expected to generate 1.71 times less return on investment than WAGNERS HOLDING. But when comparing it to its historical volatility, Live Nation Entertainment is 1.76 times less risky than WAGNERS HOLDING. It trades about 0.15 of its potential returns per unit of risk. WAGNERS HOLDING LTD is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 62.00 in WAGNERS HOLDING LTD on October 15, 2024 and sell it today you would earn a total of 20.00 from holding WAGNERS HOLDING LTD or generate 32.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Nation Entertainment vs. WAGNERS HOLDING LTD
Performance |
| Timeline |
| Live Nation Entertainment |
| WAGNERS HOLDING LTD |
Live Nation and WAGNERS HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Nation and WAGNERS HOLDING
The main advantage of trading using opposite Live Nation and WAGNERS HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, WAGNERS HOLDING 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 WAGNERS HOLDING will offset losses from the drop in WAGNERS HOLDING's long position.| Live Nation vs. SOEDER SPORTFISKE AB | Live Nation vs. SPORT LISBOA E | Live Nation vs. Fukuyama Transporting Co | Live Nation vs. Shenandoah Telecommunications |
| WAGNERS HOLDING vs. Daikin IndustriesLtd | WAGNERS HOLDING vs. Vulcan Materials | WAGNERS HOLDING vs. Heidelberg Materials AG |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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