Correlation Between Monster Beverage and Live Nation
Can any of the company-specific risk be diversified away by investing in both Monster Beverage 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 Monster Beverage and Live Nation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monster Beverage and Live Nation Entertainment,, you can compare the effects of market volatilities on Monster Beverage 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 Monster Beverage with a short position of Live Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monster Beverage and Live Nation.
Diversification Opportunities for Monster Beverage and Live Nation
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Monster and Live is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Monster Beverage and Live Nation Entertainment, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Nation Entertai and Monster Beverage 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 Monster Beverage 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 Entertai has no effect on the direction of Monster Beverage i.e., Monster Beverage and Live Nation go up and down completely randomly.
Pair Corralation between Monster Beverage and Live Nation
Assuming the 90 days trading horizon Monster Beverage is expected to generate 2.3 times less return on investment than Live Nation. In addition to that, Monster Beverage is 1.0 times more volatile than Live Nation Entertainment,. It trades about 0.04 of its total potential returns per unit of risk. Live Nation Entertainment, is currently generating about 0.1 per unit of volatility. If you would invest 9,324 in Live Nation Entertainment, on December 11, 2024 and sell it today you would earn a total of 4,984 from holding Live Nation Entertainment, or generate 53.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monster Beverage vs. Live Nation Entertainment,
Performance |
| Timeline |
| Monster Beverage |
| Live Nation Entertai |
Monster Beverage and Live Nation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monster Beverage and Live Nation
The main advantage of trading using opposite Monster Beverage and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monster Beverage 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.| Monster Beverage vs. LPL Financial Holdings | ||
| Monster Beverage vs. Charter Communications | ||
| Monster Beverage vs. SK Telecom Co, | ||
| Monster Beverage vs. KB Financial Group |
| Live Nation vs. Metalrgica Riosulense SA | ||
| Live Nation vs. Take Two Interactive Software | ||
| Live Nation vs. MAHLE Metal Leve | ||
| Live Nation vs. PENN Entertainment, |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |