Correlation Between Oncimmune Holdings and Live Nation
Can any of the company-specific risk be diversified away by investing in both Oncimmune Holdings 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 Oncimmune Holdings and Live Nation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncimmune Holdings plc and Live Nation Entertainment, you can compare the effects of market volatilities on Oncimmune Holdings 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 Oncimmune Holdings with a short position of Live Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncimmune Holdings and Live Nation.
Diversification Opportunities for Oncimmune Holdings and Live Nation
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oncimmune and Live is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Oncimmune Holdings 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 Oncimmune Holdings 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 Oncimmune Holdings 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 Oncimmune Holdings i.e., Oncimmune Holdings and Live Nation go up and down completely randomly.
Pair Corralation between Oncimmune Holdings and Live Nation
Assuming the 90 days trading horizon Oncimmune Holdings plc is expected to under-perform the Live Nation. In addition to that, Oncimmune Holdings is 2.19 times more volatile than Live Nation Entertainment. It trades about -0.11 of its total potential returns per unit of risk. Live Nation Entertainment is currently generating about 0.33 per unit of volatility. If you would invest 9,773 in Live Nation Entertainment on September 12, 2024 and sell it today you would earn a total of 3,691 from holding Live Nation Entertainment or generate 37.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Oncimmune Holdings plc vs. Live Nation Entertainment
Performance |
| Timeline |
| Oncimmune Holdings plc |
| Live Nation Entertainment |
Oncimmune Holdings and Live Nation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncimmune Holdings and Live Nation
The main advantage of trading using opposite Oncimmune Holdings and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncimmune Holdings 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.| Oncimmune Holdings vs. Mindflair Plc | Oncimmune Holdings vs. JB Hunt Transport | Oncimmune Holdings vs. Sealed Air Corp | Oncimmune Holdings vs. Amedeo Air Four |
| Live Nation vs. Samsung Electronics Co | Live Nation vs. Samsung Electronics Co | Live Nation vs. Hyundai Motor | Live Nation vs. Reliance Industries Ltd |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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