Correlation Between WIMFARM SA and Live Nation
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA 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 WIMFARM SA and Live Nation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WIMFARM SA EO and Live Nation Entertainment, you can compare the effects of market volatilities on WIMFARM SA 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 WIMFARM SA with a short position of Live Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and Live Nation.
Diversification Opportunities for WIMFARM SA and Live Nation
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WIMFARM and Live is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO 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 WIMFARM SA 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 WIMFARM SA EO 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 WIMFARM SA i.e., WIMFARM SA and Live Nation go up and down completely randomly.
Pair Corralation between WIMFARM SA and Live Nation
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the Live Nation. In addition to that, WIMFARM SA is 2.04 times more volatile than Live Nation Entertainment. It trades about -0.06 of its total potential returns per unit of risk. Live Nation Entertainment is currently generating about 0.19 per unit of volatility. If you would invest 8,668 in Live Nation Entertainment on September 1, 2024 and sell it today you would earn a total of 4,517 from holding Live Nation Entertainment or generate 52.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. Live Nation Entertainment
Performance |
| Timeline |
| WIMFARM SA EO |
| Live Nation Entertainment |
WIMFARM SA and Live Nation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and Live Nation
The main advantage of trading using opposite WIMFARM SA and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA 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.| WIMFARM SA vs. UPDATE SOFTWARE | WIMFARM SA vs. XLMedia PLC | WIMFARM SA vs. GigaMedia | WIMFARM SA vs. FUYO GENERAL LEASE |
| Live Nation vs. CAREER EDUCATION | Live Nation vs. ALGOMA STEEL GROUP | Live Nation vs. Xinhua Winshare Publishing | Live Nation vs. CHINA EDUCATION GROUP |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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