Correlation Between Live Nation and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both Live Nation and JIAHUA STORES 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 JIAHUA STORES 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 JIAHUA STORES, you can compare the effects of market volatilities on Live Nation and JIAHUA STORES 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 JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and JIAHUA STORES.
Diversification Opportunities for Live Nation and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Live and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES 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 JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of Live Nation i.e., Live Nation and JIAHUA STORES go up and down completely randomly.
Pair Corralation between Live Nation and JIAHUA STORES
If you would invest 8,668 in Live Nation Entertainment on September 1, 2024 and sell it today you would earn a total of 4,517 from holding Live Nation Entertainment or generate 52.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Nation Entertainment vs. JIAHUA STORES
Performance |
| Timeline |
| Live Nation Entertainment |
| JIAHUA STORES |
Live Nation and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Nation and JIAHUA STORES
The main advantage of trading using opposite Live Nation and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.| Live Nation vs. CAREER EDUCATION | Live Nation vs. ALGOMA STEEL GROUP | Live Nation vs. Xinhua Winshare Publishing | Live Nation vs. CHINA EDUCATION GROUP |
| JIAHUA STORES vs. SIVERS SEMICONDUCTORS AB | JIAHUA STORES vs. Darden Restaurants | JIAHUA STORES vs. Reliance Steel Aluminum | JIAHUA STORES vs. Q2M Managementberatung 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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