Correlation Between Live Nation and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Live Nation and MCEWEN MINING 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 MCEWEN MINING 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 MCEWEN MINING INC, you can compare the effects of market volatilities on Live Nation and MCEWEN MINING 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 MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and MCEWEN MINING.
Diversification Opportunities for Live Nation and MCEWEN MINING
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Live and MCEWEN is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING INC 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 MCEWEN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCEWEN MINING INC has no effect on the direction of Live Nation i.e., Live Nation and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Live Nation and MCEWEN MINING
Assuming the 90 days horizon Live Nation Entertainment is expected to generate 0.47 times more return on investment than MCEWEN MINING. However, Live Nation Entertainment is 2.12 times less risky than MCEWEN MINING. It trades about 0.27 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.03 per unit of risk. If you would invest 8,078 in Live Nation Entertainment on November 3, 2024 and sell it today you would earn a total of 5,497 from holding Live Nation Entertainment or generate 68.05% 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. MCEWEN MINING INC
Performance |
| Timeline |
| Live Nation Entertainment |
| MCEWEN MINING INC |
Live Nation and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Nation and MCEWEN MINING
The main advantage of trading using opposite Live Nation and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, MCEWEN MINING 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 MCEWEN MINING will offset losses from the drop in MCEWEN MINING's long position.| Live Nation vs. Martin Marietta Materials | Live Nation vs. Compagnie Plastic Omnium | Live Nation vs. APPLIED MATERIALS | Live Nation vs. Plastic Omnium |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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