Correlation Between Liberty Media and Anglo Asian
Can any of the company-specific risk be diversified away by investing in both Liberty Media and Anglo Asian 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 Liberty Media and Anglo Asian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Media Corp and Anglo Asian Mining, you can compare the effects of market volatilities on Liberty Media and Anglo Asian 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 Liberty Media with a short position of Anglo Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Media and Anglo Asian.
Diversification Opportunities for Liberty Media and Anglo Asian
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liberty and Anglo is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Media Corp and Anglo Asian Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Asian Mining and Liberty Media 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 Liberty Media Corp are associated (or correlated) with Anglo Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Asian Mining has no effect on the direction of Liberty Media i.e., Liberty Media and Anglo Asian go up and down completely randomly.
Pair Corralation between Liberty Media and Anglo Asian
Assuming the 90 days trading horizon Liberty Media Corp is expected to under-perform the Anglo Asian. But the stock apears to be less risky and, when comparing its historical volatility, Liberty Media Corp is 3.18 times less risky than Anglo Asian. The stock trades about -0.03 of its potential returns per unit of risk. The Anglo Asian Mining is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 10,400 in Anglo Asian Mining on October 28, 2024 and sell it today you would earn a total of 600.00 from holding Anglo Asian Mining or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liberty Media Corp vs. Anglo Asian Mining
Performance |
| Timeline |
| Liberty Media Corp |
| Anglo Asian Mining |
Liberty Media and Anglo Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Media and Anglo Asian
The main advantage of trading using opposite Liberty Media and Anglo Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Media position performs unexpectedly, Anglo Asian 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 Anglo Asian will offset losses from the drop in Anglo Asian's long position.| Liberty Media vs. Molson Coors Beverage | Liberty Media vs. Universal Display Corp | Liberty Media vs. Fair Oaks Income | Liberty Media vs. Travel Leisure Co |
| Anglo Asian vs. XLMedia PLC | Anglo Asian vs. Medical Properties Trust | Anglo Asian vs. Liberty Media Corp | Anglo Asian vs. Fresenius Medical Care |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |