Correlation Between Metals Exploration and Live Nation
Can any of the company-specific risk be diversified away by investing in both Metals Exploration 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 Metals Exploration and Live Nation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metals Exploration Plc and Live Nation Entertainment, you can compare the effects of market volatilities on Metals Exploration 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 Metals Exploration with a short position of Live Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metals Exploration and Live Nation.
Diversification Opportunities for Metals Exploration and Live Nation
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Metals and Live is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Metals Exploration Plc 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 Metals Exploration 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 Metals Exploration Plc 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 Metals Exploration i.e., Metals Exploration and Live Nation go up and down completely randomly.
Pair Corralation between Metals Exploration and Live Nation
Assuming the 90 days trading horizon Metals Exploration Plc is expected to generate 1.98 times more return on investment than Live Nation. However, Metals Exploration is 1.98 times more volatile than Live Nation Entertainment. It trades about 0.09 of its potential returns per unit of risk. Live Nation Entertainment is currently generating about 0.07 per unit of risk. If you would invest 155.00 in Metals Exploration Plc on October 28, 2024 and sell it today you would earn a total of 440.00 from holding Metals Exploration Plc or generate 283.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Metals Exploration Plc vs. Live Nation Entertainment
Performance |
| Timeline |
| Metals Exploration Plc |
| Live Nation Entertainment |
Metals Exploration and Live Nation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metals Exploration and Live Nation
The main advantage of trading using opposite Metals Exploration and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metals Exploration 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.| Metals Exploration vs. Givaudan SA | Metals Exploration vs. Antofagasta PLC | Metals Exploration vs. Ferrexpo PLC | Metals Exploration vs. Atalaya Mining |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |