Correlation Between Prosiebensat and Live Nation
Can any of the company-specific risk be diversified away by investing in both Prosiebensat 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 Prosiebensat and Live Nation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosiebensat 1 Media and Live Nation Entertainment, you can compare the effects of market volatilities on Prosiebensat 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 Prosiebensat with a short position of Live Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosiebensat and Live Nation.
Diversification Opportunities for Prosiebensat and Live Nation
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Prosiebensat and Live is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Prosiebensat 1 Media 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 Prosiebensat 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 Prosiebensat 1 Media 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 Prosiebensat i.e., Prosiebensat and Live Nation go up and down completely randomly.
Pair Corralation between Prosiebensat and Live Nation
Assuming the 90 days trading horizon Prosiebensat is expected to generate 4.96 times less return on investment than Live Nation. In addition to that, Prosiebensat is 1.57 times more volatile than Live Nation Entertainment. It trades about 0.02 of its total potential returns per unit of risk. Live Nation Entertainment is currently generating about 0.12 per unit of volatility. If you would invest 8,300 in Live Nation Entertainment on November 9, 2024 and sell it today you would earn a total of 5,850 from holding Live Nation Entertainment or generate 70.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prosiebensat 1 Media vs. Live Nation Entertainment
Performance |
| Timeline |
| Prosiebensat 1 Media |
| Live Nation Entertainment |
Prosiebensat and Live Nation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosiebensat and Live Nation
The main advantage of trading using opposite Prosiebensat and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosiebensat 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.| Prosiebensat vs. MAVEN WIRELESS SWEDEN | Prosiebensat vs. Platinum Investment Management | Prosiebensat vs. Q2M Managementberatung AG | Prosiebensat vs. CeoTronics AG |
| Live Nation vs. Universal Display | Live Nation vs. LG Display Co | Live Nation vs. PLAYWAY SA ZY 10 | Live Nation vs. Northern Data AG |
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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