Correlation Between Liberty Broadband and CEWE Stiftung
Can any of the company-specific risk be diversified away by investing in both Liberty Broadband and CEWE Stiftung 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 Broadband and CEWE Stiftung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Broadband and CEWE Stiftung Co, you can compare the effects of market volatilities on Liberty Broadband and CEWE Stiftung 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 Broadband with a short position of CEWE Stiftung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Broadband and CEWE Stiftung.
Diversification Opportunities for Liberty Broadband and CEWE Stiftung
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liberty and CEWE is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Broadband and CEWE Stiftung Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEWE Stiftung and Liberty Broadband 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 Broadband are associated (or correlated) with CEWE Stiftung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEWE Stiftung has no effect on the direction of Liberty Broadband i.e., Liberty Broadband and CEWE Stiftung go up and down completely randomly.
Pair Corralation between Liberty Broadband and CEWE Stiftung
Assuming the 90 days horizon Liberty Broadband is expected to generate 2.35 times more return on investment than CEWE Stiftung. However, Liberty Broadband is 2.35 times more volatile than CEWE Stiftung Co. It trades about -0.03 of its potential returns per unit of risk. CEWE Stiftung Co is currently generating about -0.12 per unit of risk. If you would invest 7,300 in Liberty Broadband on November 3, 2024 and sell it today you would lose (150.00) from holding Liberty Broadband or give up 2.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liberty Broadband vs. CEWE Stiftung Co
Performance |
| Timeline |
| Liberty Broadband |
| CEWE Stiftung |
Liberty Broadband and CEWE Stiftung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Broadband and CEWE Stiftung
The main advantage of trading using opposite Liberty Broadband and CEWE Stiftung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Broadband position performs unexpectedly, CEWE Stiftung 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 CEWE Stiftung will offset losses from the drop in CEWE Stiftung's long position.| Liberty Broadband vs. Gaztransport Technigaz SA | Liberty Broadband vs. SOEDER SPORTFISKE AB | Liberty Broadband vs. PARKEN Sport Entertainment | Liberty Broadband vs. MICRONIC MYDATA |
| CEWE Stiftung vs. Service International | CEWE Stiftung vs. Bright Horizons Family | CEWE Stiftung vs. BOYD GROUP SERVICES | CEWE Stiftung vs. Frontdoor |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |