Correlation Between Ashtead Technology and Live Nation
Can any of the company-specific risk be diversified away by investing in both Ashtead Technology 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 Ashtead Technology and Live Nation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashtead Technology Holdings and Live Nation Entertainment, you can compare the effects of market volatilities on Ashtead Technology 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 Ashtead Technology with a short position of Live Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashtead Technology and Live Nation.
Diversification Opportunities for Ashtead Technology and Live Nation
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ashtead and Live is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ashtead Technology Holdings 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 Ashtead Technology 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 Ashtead Technology Holdings 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 Ashtead Technology i.e., Ashtead Technology and Live Nation go up and down completely randomly.
Pair Corralation between Ashtead Technology and Live Nation
Assuming the 90 days trading horizon Ashtead Technology Holdings is expected to generate 3.85 times more return on investment than Live Nation. However, Ashtead Technology is 3.85 times more volatile than Live Nation Entertainment. It trades about 0.11 of its potential returns per unit of risk. Live Nation Entertainment is currently generating about 0.27 per unit of risk. If you would invest 54,900 in Ashtead Technology Holdings on October 28, 2024 and sell it today you would earn a total of 4,400 from holding Ashtead Technology Holdings or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashtead Technology Holdings vs. Live Nation Entertainment
Performance |
| Timeline |
| Ashtead Technology |
| Live Nation Entertainment |
Ashtead Technology and Live Nation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashtead Technology and Live Nation
The main advantage of trading using opposite Ashtead Technology and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashtead Technology 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.| Ashtead Technology vs. Zoom Video Communications | Ashtead Technology vs. Enbridge | Ashtead Technology vs. Endo International PLC | Ashtead Technology vs. Smithson Investment Trust |
| Live Nation vs. Vitec Software Group | Live Nation vs. Cognizant Technology Solutions | Live Nation vs. Orient Telecoms | Live Nation vs. Fevertree Drinks Plc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |