Correlation Between Zebra Technologies and Live Nation

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

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

Diversification Opportunities for Zebra Technologies and Live Nation

0.61

Correlation Coefficient

Zebra Technologies  Live Nation

Poor diversification

The 3 months correlation between Zebra and Live is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Zebra Technologies 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 Zebra Technologies 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 Zebra Technologies 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 Zebra Technologies i.e., Zebra Technologies and Live Nation go up and down completely randomly.

Pair Corralation between Zebra Technologies and Live Nation

Assuming the 90 days trading horizon Zebra Technologies is expected to under-perform the Live Nation. In addition to that, Zebra Technologies is 1.6 times more volatile than Live Nation Entertainment,. It trades about -0.19 of its total potential returns per unit of risk. Live Nation Entertainment, is currently generating about -0.13 per unit of volatility. If you would invest  16,416  in Live Nation Entertainment, on December 22, 2024 and sell it today you would lose (2,479) from holding Live Nation Entertainment, or give up 15.1% of portfolio value over 90 days.

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

Zebra Technologies  vs.  Live Nation Entertainment,

Zebra Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zebra Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company 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 weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Zebra Technologies and Live Nation

The main advantage of trading using opposite Zebra Technologies and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zebra Technologies 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 Zebra Technologies 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.