Correlation Between Allianz Technology and Live Nation
Can any of the company-specific risk be diversified away by investing in both Allianz 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 Allianz 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 Allianz Technology Trust and Live Nation Entertainment, you can compare the effects of market volatilities on Allianz 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 Allianz Technology with a short position of Live Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Live Nation.
Diversification Opportunities for Allianz Technology and Live Nation
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianz and Live is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust 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 Allianz 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 Allianz Technology Trust 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 Allianz Technology i.e., Allianz Technology and Live Nation go up and down completely randomly.
Pair Corralation between Allianz Technology and Live Nation
Assuming the 90 days trading horizon Allianz Technology is expected to generate 1.01 times less return on investment than Live Nation. In addition to that, Allianz Technology is 1.18 times more volatile than Live Nation Entertainment. It trades about 0.23 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 13,146 in Live Nation Entertainment on October 28, 2024 and sell it today you would earn a total of 827.00 from holding Live Nation Entertainment or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz Technology Trust vs. Live Nation Entertainment
Performance |
| Timeline |
| Allianz Technology Trust |
| Live Nation Entertainment |
Allianz Technology and Live Nation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Live Nation
The main advantage of trading using opposite Allianz Technology and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz 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.| Allianz Technology vs. Lundin Mining Corp | Allianz Technology vs. Cornish Metals | Allianz Technology vs. URU Metals | Allianz Technology vs. European Metals Holdings |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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