Correlation Between Live Nation and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Live Nation and ASURE SOFTWARE 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 ASURE SOFTWARE 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 ASURE SOFTWARE, you can compare the effects of market volatilities on Live Nation and ASURE SOFTWARE 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 ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and ASURE SOFTWARE.
Diversification Opportunities for Live Nation and ASURE SOFTWARE
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Live and ASURE is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE 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 ASURE SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASURE SOFTWARE has no effect on the direction of Live Nation i.e., Live Nation and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between Live Nation and ASURE SOFTWARE
Assuming the 90 days horizon Live Nation is expected to generate 11.03 times less return on investment than ASURE SOFTWARE. But when comparing it to its historical volatility, Live Nation Entertainment is 2.12 times less risky than ASURE SOFTWARE. It trades about 0.06 of its potential returns per unit of risk. ASURE SOFTWARE is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 810.00 in ASURE SOFTWARE on October 17, 2024 and sell it today you would earn a total of 300.00 from holding ASURE SOFTWARE or generate 37.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Nation Entertainment vs. ASURE SOFTWARE
Performance |
| Timeline |
| Live Nation Entertainment |
| ASURE SOFTWARE |
Live Nation and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Nation and ASURE SOFTWARE
The main advantage of trading using opposite Live Nation and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, ASURE SOFTWARE 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 ASURE SOFTWARE will offset losses from the drop in ASURE SOFTWARE's long position.| Live Nation vs. BROADPEAK SA EO | Live Nation vs. GOLD ROAD RES | Live Nation vs. NAGOYA RAILROAD | Live Nation vs. Broadridge Financial Solutions |
| ASURE SOFTWARE vs. ZINC MEDIA GR | ASURE SOFTWARE vs. Live Nation Entertainment | ASURE SOFTWARE vs. BE Semiconductor Industries | ASURE SOFTWARE vs. Nordic Semiconductor ASA |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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