Correlation Between GREENX METALS and Live Nation
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Live Nation 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 GREENX METALS and Live Nation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and Live Nation Entertainment, you can compare the effects of market volatilities on GREENX METALS and Live Nation 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 GREENX METALS with a short position of Live Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Live Nation.
Diversification Opportunities for GREENX METALS and Live Nation
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GREENX and Live is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Live Nation Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Nation Entertainment and GREENX METALS 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 GREENX METALS LTD are associated (or correlated) with Live Nation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Nation Entertainment has no effect on the direction of GREENX METALS i.e., GREENX METALS and Live Nation go up and down completely randomly.
Pair Corralation between GREENX METALS and Live Nation
Assuming the 90 days trading horizon GREENX METALS is expected to generate 3.56 times less return on investment than Live Nation. In addition to that, GREENX METALS is 2.94 times more volatile than Live Nation Entertainment. It trades about 0.03 of its total potential returns per unit of risk. Live Nation Entertainment is currently generating about 0.27 per unit of volatility. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Live Nation Entertainment
Performance |
| Timeline |
| GREENX METALS LTD |
| Live Nation Entertainment |
GREENX METALS and Live Nation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Live Nation
The main advantage of trading using opposite GREENX METALS and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Live Nation 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 Live Nation will offset losses from the drop in Live Nation's long position.| GREENX METALS vs. SLR Investment Corp | GREENX METALS vs. Apollo Investment Corp | GREENX METALS vs. Soken Chemical Engineering | GREENX METALS vs. MGIC INVESTMENT |
| Live Nation vs. Martin Marietta Materials | Live Nation vs. Compagnie Plastic Omnium | Live Nation vs. APPLIED MATERIALS | Live Nation vs. Plastic Omnium |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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