Correlation Between Core Main and Live Nation
Can any of the company-specific risk be diversified away by investing in both Core Main 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 Core Main and Live Nation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Core Main and Live Nation Entertainment, you can compare the effects of market volatilities on Core Main 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 Core Main with a short position of Live Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Main and Live Nation.
Diversification Opportunities for Core Main and Live Nation
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Core and Live is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Core Main 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 Core Main 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 Core Main 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 Core Main i.e., Core Main and Live Nation go up and down completely randomly.
Pair Corralation between Core Main and Live Nation
Considering the 90-day investment horizon Core Main is expected to under-perform the Live Nation. In addition to that, Core Main is 1.99 times more volatile than Live Nation Entertainment. It trades about -0.03 of its total potential returns per unit of risk. Live Nation Entertainment is currently generating about 0.21 per unit of volatility. If you would invest 9,435 in Live Nation Entertainment on August 30, 2024 and sell it today you would earn a total of 4,538 from holding Live Nation Entertainment or generate 48.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Core Main vs. Live Nation Entertainment
Performance |
| Timeline |
| Core Main |
| Live Nation Entertainment |
Core Main and Live Nation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Core Main and Live Nation
The main advantage of trading using opposite Core Main and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Main 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.| Core Main vs. DXP Enterprises | Core Main vs. Watsco Inc | Core Main vs. Distribution Solutions Group | Core Main vs. SiteOne Landscape Supply |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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