Correlation Between Live Nation and Ping An
Can any of the company-specific risk be diversified away by investing in both Live Nation and Ping An 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 Ping An 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 Ping An Insurance, you can compare the effects of market volatilities on Live Nation and Ping An 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 Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and Ping An.
Diversification Opportunities for Live Nation and Ping An
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Live and Ping is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of Live Nation i.e., Live Nation and Ping An go up and down completely randomly.
Pair Corralation between Live Nation and Ping An
Assuming the 90 days horizon Live Nation is expected to generate 1.9 times less return on investment than Ping An. But when comparing it to its historical volatility, Live Nation Entertainment is 1.98 times less risky than Ping An. It trades about 0.07 of its potential returns per unit of risk. Ping An Insurance is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 188.00 in Ping An Insurance on August 27, 2024 and sell it today you would earn a total of 358.00 from holding Ping An Insurance or generate 190.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Nation Entertainment vs. Ping An Insurance
Performance |
| Timeline |
| Live Nation Entertainment |
| Ping An Insurance |
Live Nation and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Nation and Ping An
The main advantage of trading using opposite Live Nation and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.| Live Nation vs. QINGCI GAMES INC | Live Nation vs. Air New Zealand | Live Nation vs. GameStop Corp | Live Nation vs. FUTURE GAMING GRP |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |