Correlation Between Live Nation and Atlanta Braves
Can any of the company-specific risk be diversified away by investing in both Live Nation and Atlanta Braves 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 Live Nation and Atlanta Braves into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Nation Entertainment and Atlanta Braves Holdings,, you can compare the effects of market volatilities on Live Nation and Atlanta Braves 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 Live Nation with a short position of Atlanta Braves. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and Atlanta Braves.
Diversification Opportunities for Live Nation and Atlanta Braves
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Live and Atlanta is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment and Atlanta Braves Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanta Braves Holdings, and Live Nation 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 Live Nation Entertainment are associated (or correlated) with Atlanta Braves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlanta Braves Holdings, has no effect on the direction of Live Nation i.e., Live Nation and Atlanta Braves go up and down completely randomly.
Pair Corralation between Live Nation and Atlanta Braves
Considering the 90-day investment horizon Live Nation Entertainment is expected to generate 1.25 times more return on investment than Atlanta Braves. However, Live Nation is 1.25 times more volatile than Atlanta Braves Holdings,. It trades about 0.39 of its potential returns per unit of risk. Atlanta Braves Holdings, is currently generating about -0.11 per unit of risk. If you would invest 9,695 in Live Nation Entertainment on August 28, 2024 and sell it today you would earn a total of 4,359 from holding Live Nation Entertainment or generate 44.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Nation Entertainment vs. Atlanta Braves Holdings,
Performance |
| Timeline |
| Live Nation Entertainment |
| Atlanta Braves Holdings, |
Live Nation and Atlanta Braves Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Nation and Atlanta Braves
The main advantage of trading using opposite Live Nation and Atlanta Braves positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, Atlanta Braves 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 Atlanta Braves will offset losses from the drop in Atlanta Braves' long position.| Live Nation vs. Liberty Media | Live Nation vs. Atlanta Braves Holdings, | Live Nation vs. News Corp B | Live Nation vs. News Corp A |
| Atlanta Braves vs. ADTRAN Inc | Atlanta Braves vs. Belden Inc | Atlanta Braves vs. ADC Therapeutics SA | Atlanta Braves vs. Comtech Telecommunications Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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