Correlation Between GB Group and Liberty Broadband
Can any of the company-specific risk be diversified away by investing in both GB Group and Liberty Broadband 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 GB Group and Liberty Broadband into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GB Group plc and Liberty Broadband, you can compare the effects of market volatilities on GB Group and Liberty Broadband 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 GB Group with a short position of Liberty Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of GB Group and Liberty Broadband.
Diversification Opportunities for GB Group and Liberty Broadband
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0GB and Liberty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GB Group plc and Liberty Broadband in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Broadband and GB Group 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 GB Group plc are associated (or correlated) with Liberty Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Broadband has no effect on the direction of GB Group i.e., GB Group and Liberty Broadband go up and down completely randomly.
Pair Corralation between GB Group and Liberty Broadband
If you would invest 7,300 in Liberty Broadband on October 26, 2024 and sell it today you would earn a total of 50.00 from holding Liberty Broadband or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
GB Group plc vs. Liberty Broadband
Performance |
| Timeline |
| GB Group plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Liberty Broadband |
GB Group and Liberty Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GB Group and Liberty Broadband
The main advantage of trading using opposite GB Group and Liberty Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GB Group position performs unexpectedly, Liberty Broadband 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 Liberty Broadband will offset losses from the drop in Liberty Broadband's long position.| GB Group vs. Align Technology | GB Group vs. Treasury Wine Estates | GB Group vs. American Eagle Outfitters | GB Group vs. Micron Technology |
| Liberty Broadband vs. DEVRY EDUCATION GRP | Liberty Broadband vs. Xinhua Winshare Publishing | Liberty Broadband vs. Nanjing Panda Electronics | Liberty Broadband vs. STRAYER EDUCATION |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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