Correlation Between Corsair Gaming and Live Nation
Can any of the company-specific risk be diversified away by investing in both Corsair Gaming 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 Corsair Gaming and Live Nation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corsair Gaming and Live Nation Entertainment, you can compare the effects of market volatilities on Corsair Gaming 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 Corsair Gaming with a short position of Live Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and Live Nation.
Diversification Opportunities for Corsair Gaming and Live Nation
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Corsair and Live is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming 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 Corsair Gaming 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 Corsair Gaming 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 Corsair Gaming i.e., Corsair Gaming and Live Nation go up and down completely randomly.
Pair Corralation between Corsair Gaming and Live Nation
Assuming the 90 days horizon Corsair Gaming is expected to generate 4.07 times more return on investment than Live Nation. However, Corsair Gaming is 4.07 times more volatile than Live Nation Entertainment. It trades about 0.4 of its potential returns per unit of risk. Live Nation Entertainment is currently generating about 0.58 per unit of risk. If you would invest 686.00 in Corsair Gaming on November 5, 2024 and sell it today you would earn a total of 206.00 from holding Corsair Gaming or generate 30.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corsair Gaming vs. Live Nation Entertainment
Performance |
| Timeline |
| Corsair Gaming |
| Live Nation Entertainment |
Corsair Gaming and Live Nation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corsair Gaming and Live Nation
The main advantage of trading using opposite Corsair Gaming and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming 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.| Corsair Gaming vs. MCEWEN MINING INC | Corsair Gaming vs. WisdomTree Investments | Corsair Gaming vs. Monument Mining Limited | Corsair Gaming vs. Canadian Utilities Limited |
| Live Nation vs. Apollo Investment Corp | Live Nation vs. Lattice Semiconductor | Live Nation vs. Scottish Mortgage Investment | Live Nation vs. ScanSource |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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