Correlation Between ATN International and Liberty Broadband
Can any of the company-specific risk be diversified away by investing in both ATN International and Liberty Broadband 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 ATN International and Liberty Broadband into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATN International and Liberty Broadband Srs, you can compare the effects of market volatilities on ATN International and Liberty Broadband 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 ATN International with a short position of Liberty Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATN International and Liberty Broadband.
Diversification Opportunities for ATN International and Liberty Broadband
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATN and Liberty is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding ATN International and Liberty Broadband Srs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Broadband Srs and ATN International 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 ATN International are associated (or correlated) with Liberty Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Broadband Srs has no effect on the direction of ATN International i.e., ATN International and Liberty Broadband go up and down completely randomly.
Pair Corralation between ATN International and Liberty Broadband
Given the investment horizon of 90 days ATN International is expected to under-perform the Liberty Broadband. In addition to that, ATN International is 1.1 times more volatile than Liberty Broadband Srs. It trades about -0.11 of its total potential returns per unit of risk. Liberty Broadband Srs is currently generating about 0.03 per unit of volatility. If you would invest 7,546 in Liberty Broadband Srs on November 3, 2024 and sell it today you would earn a total of 57.00 from holding Liberty Broadband Srs or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATN International vs. Liberty Broadband Srs
Performance |
| Timeline |
| ATN International |
| Liberty Broadband Srs |
ATN International and Liberty Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATN International and Liberty Broadband
The main advantage of trading using opposite ATN International and Liberty Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATN International position performs unexpectedly, Liberty Broadband 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 Liberty Broadband will offset losses from the drop in Liberty Broadband's long position.| ATN International vs. KT Corporation | ATN International vs. SK Telecom Co | ATN International vs. Ooma Inc | ATN International vs. Liberty Broadband Srs |
| Liberty Broadband vs. KT Corporation | Liberty Broadband vs. Cable One | Liberty Broadband vs. Liberty Global PLC | Liberty Broadband vs. Liberty Latin America |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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