Correlation Between SEEK and Live Nation

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

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

Diversification Opportunities for SEEK and Live Nation

0.0

Correlation Coefficient

SEEK  Live Nation

Pay attention - limited upside

The 3 months correlation between SEEK and Live is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SEEK Limited 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 SEEK 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 SEEK Limited 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 SEEK i.e., SEEK and Live Nation go up and down completely randomly.

Pair Corralation between SEEK and Live Nation

If you would invest  12,560  in Live Nation Entertainment on May 16, 2025 and sell it today you would earn a total of  685.00  from holding Live Nation Entertainment or generate 5.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

SEEK Limited  vs.  Live Nation Entertainment

SEEK Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days SEEK Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SEEK is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Live Nation Entertainment

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Live Nation Entertainment are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Live Nation is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SEEK and Live Nation

The main advantage of trading using opposite SEEK and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEEK 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 SEEK Limited 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.

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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.