Correlation Between Liberty Broadband and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both Liberty Broadband and XTANT MEDICAL 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 XTANT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Broadband and XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on Liberty Broadband and XTANT MEDICAL 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 XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Broadband and XTANT MEDICAL.
Diversification Opportunities for Liberty Broadband and XTANT MEDICAL
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liberty and XTANT is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Broadband and XTANT MEDICAL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTANT MEDICAL HLDGS 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 XTANT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTANT MEDICAL HLDGS has no effect on the direction of Liberty Broadband i.e., Liberty Broadband and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between Liberty Broadband and XTANT MEDICAL
Assuming the 90 days horizon Liberty Broadband is expected to under-perform the XTANT MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, Liberty Broadband is 2.99 times less risky than XTANT MEDICAL. The stock trades about -0.26 of its potential returns per unit of risk. The XTANT MEDICAL HLDGS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 40.00 in XTANT MEDICAL HLDGS on October 16, 2024 and sell it today you would earn a total of 4.00 from holding XTANT MEDICAL HLDGS or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.37% |
| Values | Daily Returns |
Liberty Broadband vs. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| Liberty Broadband |
| XTANT MEDICAL HLDGS |
Liberty Broadband and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Broadband and XTANT MEDICAL
The main advantage of trading using opposite Liberty Broadband and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Broadband position performs unexpectedly, XTANT MEDICAL 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 XTANT MEDICAL will offset losses from the drop in XTANT MEDICAL's long position.| Liberty Broadband vs. FARM 51 GROUP | Liberty Broadband vs. Australian Agricultural | Liberty Broadband vs. Federal Agricultural Mortgage | Liberty Broadband vs. Casio Computer CoLtd |
| XTANT MEDICAL vs. Liberty Broadband | XTANT MEDICAL vs. Gaztransport Technigaz SA | XTANT MEDICAL vs. TEXAS ROADHOUSE | XTANT MEDICAL vs. Align Technology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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