Correlation Between Color Star and Live Nation
Can any of the company-specific risk be diversified away by investing in both Color Star 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 Color Star and Live Nation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Color Star Technology and Live Nation Entertainment, you can compare the effects of market volatilities on Color Star 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 Color Star with a short position of Live Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Color Star and Live Nation.
Diversification Opportunities for Color Star and Live Nation
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Color and Live is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Color Star Technology 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 Color Star 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 Color Star Technology 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 Color Star i.e., Color Star and Live Nation go up and down completely randomly.
Pair Corralation between Color Star and Live Nation
Considering the 90-day investment horizon Color Star Technology is expected to under-perform the Live Nation. In addition to that, Color Star is 5.14 times more volatile than Live Nation Entertainment. It trades about -0.44 of its total potential returns per unit of risk. Live Nation Entertainment is currently generating about 0.4 per unit of volatility. If you would invest 11,843 in Live Nation Entertainment on August 27, 2024 and sell it today you would earn a total of 2,186 from holding Live Nation Entertainment or generate 18.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Color Star Technology vs. Live Nation Entertainment
Performance |
| Timeline |
| Color Star Technology |
| Live Nation Entertainment |
Color Star and Live Nation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Color Star and Live Nation
The main advantage of trading using opposite Color Star and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Color Star 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.| Color Star vs. ADTRAN Inc | Color Star vs. Belden Inc | Color Star vs. ADC Therapeutics SA | Color Star vs. Comtech Telecommunications Corp |
| Live Nation vs. Liberty Media | Live Nation vs. Atlanta Braves Holdings, | Live Nation vs. News Corp B | Live Nation vs. News Corp A |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |