Correlation Between Live Nation and Kuke Music
Can any of the company-specific risk be diversified away by investing in both Live Nation and Kuke Music 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 Kuke Music 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 Kuke Music Holding, you can compare the effects of market volatilities on Live Nation and Kuke Music 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 Kuke Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Nation and Kuke Music.
Diversification Opportunities for Live Nation and Kuke Music
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Live and Kuke is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Live Nation Entertainment and Kuke Music Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuke Music Holding 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 Kuke Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuke Music Holding has no effect on the direction of Live Nation i.e., Live Nation and Kuke Music go up and down completely randomly.
Pair Corralation between Live Nation and Kuke Music
Considering the 90-day investment horizon Live Nation Entertainment is expected to generate 0.33 times more return on investment than Kuke Music. However, Live Nation Entertainment is 2.99 times less risky than Kuke Music. It trades about 0.15 of its potential returns per unit of risk. Kuke Music Holding is currently generating about -0.19 per unit of risk. If you would invest 14,359 in Live Nation Entertainment on June 11, 2025 and sell it today you would earn a total of 1,983 from holding Live Nation Entertainment or generate 13.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Nation Entertainment vs. Kuke Music Holding
Performance |
| Timeline |
| Live Nation Entertainment |
| Kuke Music Holding |
Live Nation and Kuke Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Nation and Kuke Music
The main advantage of trading using opposite Live Nation and Kuke Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Nation position performs unexpectedly, Kuke Music 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 Kuke Music will offset losses from the drop in Kuke Music's long position.| Live Nation vs. Liberty Media | Live Nation vs. Warner Music Group | Live Nation vs. Madison Square Garden | Live Nation vs. News Corp A |
| Kuke Music vs. Imax Corp | Kuke Music vs. Live Nation Entertainment | Kuke Music vs. Sirius XM Holding | Kuke Music vs. iQIYI Inc |
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 the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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