Correlation Between Live Nation and Celtic Plc
Can any of the company-specific risk be diversified away by investing in both Live Nation and Celtic Plc 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 Celtic Plc 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 Celtic plc, you can compare the effects of market volatilities on Live Nation and Celtic Plc 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 Celtic Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and Celtic Plc.
Diversification Opportunities for Live Nation and Celtic Plc
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Live and Celtic is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment and Celtic plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celtic plc 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 Celtic Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celtic plc has no effect on the direction of Live Nation i.e., Live Nation and Celtic Plc go up and down completely randomly.
Pair Corralation between Live Nation and Celtic Plc
Considering the 90-day investment horizon Live Nation Entertainment is expected to generate 0.6 times more return on investment than Celtic Plc. However, Live Nation Entertainment is 1.67 times less risky than Celtic Plc. It trades about 0.36 of its potential returns per unit of risk. Celtic plc is currently generating about 0.04 per unit of risk. If you would invest 11,881 in Live Nation Entertainment on August 30, 2024 and sell it today you would earn a total of 2,092 from holding Live Nation Entertainment or generate 17.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Live Nation Entertainment vs. Celtic plc
Performance |
| Timeline |
| Live Nation Entertainment |
| Celtic plc |
Live Nation and Celtic Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Nation and Celtic Plc
The main advantage of trading using opposite Live Nation and Celtic Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, Celtic Plc 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 Celtic Plc will offset losses from the drop in Celtic Plc's 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 |
| Celtic Plc vs. Warner Music Group | Celtic Plc vs. Live Nation Entertainment | Celtic Plc vs. Atlanta Braves Holdings, | Celtic Plc vs. Warner Bros Discovery |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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