Correlation Between Live Nation and Bolloré SE

Can any of the company-specific risk be diversified away by investing in both Live Nation and Bolloré SE 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 Bolloré SE 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 Bollor SE, you can compare the effects of market volatilities on Live Nation and Bolloré SE 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 Bolloré SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and Bolloré SE.

Diversification Opportunities for Live Nation and Bolloré SE

-0.45

Correlation Coefficient

Live Nation  Bolloré SE

Very good diversification

The 3 months correlation between Live and Bolloré is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment and Bollor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolloré SE 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 Bolloré SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolloré SE has no effect on the direction of Live Nation i.e., Live Nation and Bolloré SE go up and down completely randomly.

Pair Corralation between Live Nation and Bolloré SE

Considering the 90-day investment horizon Live Nation Entertainment is expected to under-perform the Bolloré SE. In addition to that, Live Nation is 1.06 times more volatile than Bollor SE. It trades about -0.08 of its total potential returns per unit of risk. Bollor SE is currently generating about 0.07 per unit of volatility. If you would invest  590.00  in Bollor SE on December 19, 2024 and sell it today you would earn a total of  41.00  from holding Bollor SE or generate 6.95% return on investment over 90 days.

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

Live Nation Entertainment  vs.  Bollor SE

Live Nation Entertainment

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. In spite of latest conflicting performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Bolloré SE

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bollor SE are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Bolloré SE may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Live Nation and Bolloré SE

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

The idea behind Live Nation Entertainment and Bollor SE 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 Transaction History module to view history of all your transactions and understand their impact on performance.