Correlation Between Liberty Media and Fonix Mobile
Can any of the company-specific risk be diversified away by investing in both Liberty Media and Fonix Mobile 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 Fonix Mobile 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 Fonix Mobile plc, you can compare the effects of market volatilities on Liberty Media and Fonix Mobile 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 Fonix Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Media and Fonix Mobile.
Diversification Opportunities for Liberty Media and Fonix Mobile
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liberty and Fonix is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Media Corp and Fonix Mobile plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fonix Mobile plc 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 Fonix Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fonix Mobile plc has no effect on the direction of Liberty Media i.e., Liberty Media and Fonix Mobile go up and down completely randomly.
Pair Corralation between Liberty Media and Fonix Mobile
Assuming the 90 days trading horizon Liberty Media Corp is expected to generate 0.53 times more return on investment than Fonix Mobile. However, Liberty Media Corp is 1.9 times less risky than Fonix Mobile. It trades about 0.18 of its potential returns per unit of risk. Fonix Mobile plc is currently generating about -0.04 per unit of risk. If you would invest 8,417 in Liberty Media Corp on November 3, 2024 and sell it today you would earn a total of 331.00 from holding Liberty Media Corp or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liberty Media Corp vs. Fonix Mobile plc
Performance |
| Timeline |
| Liberty Media Corp |
| Fonix Mobile plc |
Liberty Media and Fonix Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Media and Fonix Mobile
The main advantage of trading using opposite Liberty Media and Fonix Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Media position performs unexpectedly, Fonix Mobile 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 Fonix Mobile will offset losses from the drop in Fonix Mobile's long position.| Liberty Media vs. Check Point Software | Liberty Media vs. Learning Technologies Group | Liberty Media vs. Hochschild Mining plc | Liberty Media vs. Polar Capital Technology |
| Fonix Mobile vs. Gear4music Plc | Fonix Mobile vs. Fair Oaks Income | Fonix Mobile vs. Liberty Media Corp | Fonix Mobile vs. Qurate Retail Series |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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