Correlation Between Live Nation and CTS Eventim
Can any of the company-specific risk be diversified away by investing in both Live Nation and CTS Eventim 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 CTS Eventim 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 CTS Eventim AG, you can compare the effects of market volatilities on Live Nation and CTS Eventim 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 CTS Eventim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and CTS Eventim.
Diversification Opportunities for Live Nation and CTS Eventim
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Live and CTS is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment and CTS Eventim AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTS Eventim AG 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 CTS Eventim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTS Eventim AG has no effect on the direction of Live Nation i.e., Live Nation and CTS Eventim go up and down completely randomly.
Pair Corralation between Live Nation and CTS Eventim
Assuming the 90 days horizon Live Nation Entertainment is expected to generate 0.91 times more return on investment than CTS Eventim. However, Live Nation Entertainment is 1.1 times less risky than CTS Eventim. It trades about 0.34 of its potential returns per unit of risk. CTS Eventim AG is currently generating about 0.0 per unit of risk. If you would invest 8,784 in Live Nation Entertainment on September 2, 2024 and sell it today you would earn a total of 4,401 from holding Live Nation Entertainment or generate 50.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Nation Entertainment vs. CTS Eventim AG
Performance |
| Timeline |
| Live Nation Entertainment |
| CTS Eventim AG |
Live Nation and CTS Eventim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Nation and CTS Eventim
The main advantage of trading using opposite Live Nation and CTS Eventim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, CTS Eventim 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 CTS Eventim will offset losses from the drop in CTS Eventim's long position.| Live Nation vs. Rai Way SpA | Live Nation vs. Superior Plus Corp | Live Nation vs. NMI Holdings | Live Nation vs. Origin Agritech |
| CTS Eventim vs. Wyndham Hotels Resorts | CTS Eventim vs. Xenia Hotels Resorts | CTS Eventim vs. AUSTEVOLL SEAFOOD | CTS Eventim vs. Dalata Hotel 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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