Correlation Between Intelbras and Live Nation

Can any of the company-specific risk be diversified away by investing in both Intelbras 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 Intelbras and Live Nation into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intelbras SA and Live Nation Entertainment,, you can compare the effects of market volatilities on Intelbras 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 Intelbras with a short position of Live Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intelbras and Live Nation.

Diversification Opportunities for Intelbras and Live Nation

0.75

Correlation Coefficient

Intelbras  Live Nation

Poor diversification

The 3 months correlation between Intelbras and Live is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Intelbras SA 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 Intelbras 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 Intelbras SA 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 Intelbras i.e., Intelbras and Live Nation go up and down completely randomly.

Pair Corralation between Intelbras and Live Nation

Assuming the 90 days trading horizon Intelbras SA is expected to generate 1.24 times more return on investment than Live Nation. However, Intelbras is 1.24 times more volatile than Live Nation Entertainment,. It trades about 0.0 of its potential returns per unit of risk. Live Nation Entertainment, is currently generating about -0.08 per unit of risk. If you would invest  1,259  in Intelbras SA on December 25, 2024 and sell it today you would lose (29.00) from holding Intelbras SA or give up 2.3% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Intelbras SA   vs.  Live Nation Entertainment,

Intelbras SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intelbras SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Intelbras is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Live Nation Entertai

Risk-Adjusted Performance

Very Weak

Over the last 90 days Live Nation Entertainment, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Intelbras and Live Nation

The main advantage of trading using opposite Intelbras and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intelbras 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.

The idea behind Intelbras SA and Live Nation Entertainment, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.