Correlation Between Live Nation and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Live Nation and Austevoll Seafood 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 Austevoll Seafood 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 Austevoll Seafood ASA, you can compare the effects of market volatilities on Live Nation and Austevoll Seafood 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 Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and Austevoll Seafood.
Diversification Opportunities for Live Nation and Austevoll Seafood
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Live and Austevoll is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood ASA 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 Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of Live Nation i.e., Live Nation and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Live Nation and Austevoll Seafood
Assuming the 90 days horizon Live Nation Entertainment is expected to generate 0.45 times more return on investment than Austevoll Seafood. However, Live Nation Entertainment is 2.2 times less risky than Austevoll Seafood. It trades about -0.16 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about -0.15 per unit of risk. If you would invest 12,925 in Live Nation Entertainment on October 14, 2024 and sell it today you would lose (335.00) from holding Live Nation Entertainment or give up 2.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Nation Entertainment vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Live Nation Entertainment |
| Austevoll Seafood ASA |
Live Nation and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Nation and Austevoll Seafood
The main advantage of trading using opposite Live Nation and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, Austevoll Seafood 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 Austevoll Seafood will offset losses from the drop in Austevoll Seafood's long position.| Live Nation vs. INDO RAMA SYNTHETIC | Live Nation vs. Goosehead Insurance | Live Nation vs. QBE Insurance Group | Live Nation vs. CHEMICAL INDUSTRIES |
| Austevoll Seafood vs. CHINA SOUTHN AIR H | Austevoll Seafood vs. DELTA AIR LINES | Austevoll Seafood vs. Live Nation Entertainment | Austevoll Seafood vs. MYFAIR GOLD P |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |