Correlation Between Marcus and Live Nation

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Can any of the company-specific risk be diversified away by investing in both Marcus 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 Marcus and Live Nation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marcus and Live Nation Entertainment, you can compare the effects of market volatilities on Marcus 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 Marcus with a short position of Live Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcus and Live Nation.

Diversification Opportunities for Marcus and Live Nation

  Correlation Coefficient

Average diversification

The 3 months correlation between Marcus and Live Nation is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Marcus 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 Marcus 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 Marcus 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 Marcus i.e., Marcus and Live Nation go up and down completely randomly.

Pair Corralation between Marcus and Live Nation

Considering the 90-day investment horizon Marcus is expected to generate 0.56 times more return on investment than Live Nation. However, Marcus is 1.8 times less risky than Live Nation. It trades about 0.33 of its potential returns per unit of risk. Live Nation Entertainment is currently generating about 0.03 per unit of risk. If you would invest  1,519  in Marcus on September 6, 2022 and sell it today you would earn a total of  153.00  from holding Marcus or generate 10.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

Marcus  vs.  Live Nation Entertainment

 Performance (%) 
Marcus Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Marcus are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, Marcus is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Marcus Price Channel

Live Nation Entertainment 
Live Nation Performance
0 of 100
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 uncertain performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2023. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Live Nation Price Channel

Marcus and Live Nation Volatility Contrast

   Predicted Return Density   

Pair Trading with Marcus and Live Nation

The main advantage of trading using opposite Marcus and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcus 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.
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The idea behind Marcus 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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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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