Correlation Between Liberty Broadband and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both Liberty Broadband and Thai Beverage 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 Thai Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Broadband and Thai Beverage Public, you can compare the effects of market volatilities on Liberty Broadband and Thai Beverage 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 Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Broadband and Thai Beverage.
Diversification Opportunities for Liberty Broadband and Thai Beverage
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liberty and Thai is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Broadband and Thai Beverage Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Beverage Public 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 Thai Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Beverage Public has no effect on the direction of Liberty Broadband i.e., Liberty Broadband and Thai Beverage go up and down completely randomly.
Pair Corralation between Liberty Broadband and Thai Beverage
Assuming the 90 days horizon Liberty Broadband is expected to under-perform the Thai Beverage. But the stock apears to be less risky and, when comparing its historical volatility, Liberty Broadband is 1.69 times less risky than Thai Beverage. The stock trades about -0.03 of its potential returns per unit of risk. The Thai Beverage Public is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Thai Beverage Public on November 8, 2024 and sell it today you would lose (1.00) from holding Thai Beverage Public or give up 2.56% 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. Thai Beverage Public
Performance |
| Timeline |
| Liberty Broadband |
| Thai Beverage Public |
Liberty Broadband and Thai Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Broadband and Thai Beverage
The main advantage of trading using opposite Liberty Broadband and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Broadband position performs unexpectedly, Thai Beverage 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 Thai Beverage will offset losses from the drop in Thai Beverage's long position.| Liberty Broadband vs. GOME Retail Holdings | Liberty Broadband vs. Fast Retailing Co | Liberty Broadband vs. Mobilezone Holding AG | Liberty Broadband vs. Geely Automobile Holdings |
| Thai Beverage vs. Emperor Entertainment Hotel | Thai Beverage vs. Hyatt Hotels | Thai Beverage vs. COMMERCIAL VEHICLE | Thai Beverage vs. Dalata Hotel Group |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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