Correlation Between Live Nation and Bemobi Mobile

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

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

Diversification Opportunities for Live Nation and Bemobi Mobile

-0.03

Correlation Coefficient

Live Nation  Bemobi Mobile

Good diversification

The 3 months correlation between Live and Bemobi is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment, and Bemobi Mobile Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bemobi Mobile Tech and Live Nation 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 Live Nation Entertainment, are associated (or correlated) with Bemobi Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bemobi Mobile Tech has no effect on the direction of Live Nation i.e., Live Nation and Bemobi Mobile go up and down completely randomly.

Pair Corralation between Live Nation and Bemobi Mobile

Assuming the 90 days trading horizon Live Nation Entertainment, is expected to generate 0.45 times more return on investment than Bemobi Mobile. However, Live Nation Entertainment, is 2.22 times less risky than Bemobi Mobile. It trades about -0.14 of its potential returns per unit of risk. Bemobi Mobile Tech is currently generating about -0.07 per unit of risk. If you would invest  16,380  in Live Nation Entertainment, on October 5, 2024 and sell it today you would lose (668.00) from holding Live Nation Entertainment, or give up 4.08% of portfolio value over 90 days.

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

Live Nation Entertainment,  vs.  Bemobi Mobile Tech

Live Nation Entertai

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Live Nation Entertainment, are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Live Nation sustained solid returns over the last few months and may actually be approaching a breakup point.

Bemobi Mobile Tech

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Live Nation and Bemobi Mobile

The main advantage of trading using opposite Live Nation and Bemobi Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, Bemobi Mobile 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 Bemobi Mobile will offset losses from the drop in Bemobi Mobile's long position.

The idea behind Live Nation Entertainment, and Bemobi Mobile Tech 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.