Correlation Between BB Liquidating and Liberty Media
Can any of the company-specific risk be diversified away by investing in both BB Liquidating and Liberty Media 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 BB Liquidating and Liberty Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BB Liquidating B and Liberty Media, you can compare the effects of market volatilities on BB Liquidating and Liberty Media 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 BB Liquidating with a short position of Liberty Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of BB Liquidating and Liberty Media.
Diversification Opportunities for BB Liquidating and Liberty Media
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BLIBQ and Liberty is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding BB Liquidating B and Liberty Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Media and BB Liquidating 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 BB Liquidating B are associated (or correlated) with Liberty Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Media has no effect on the direction of BB Liquidating i.e., BB Liquidating and Liberty Media go up and down completely randomly.
Pair Corralation between BB Liquidating and Liberty Media
If you would invest 5,848 in Liberty Media on August 24, 2024 and sell it today you would earn a total of 1,937 from holding Liberty Media or generate 33.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
BB Liquidating B vs. Liberty Media
Performance |
| Timeline |
| BB Liquidating B |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Liberty Media |
BB Liquidating and Liberty Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BB Liquidating and Liberty Media
The main advantage of trading using opposite BB Liquidating and Liberty Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BB Liquidating position performs unexpectedly, Liberty Media 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 Media will offset losses from the drop in Liberty Media's long position.| BB Liquidating vs. QYOU Media | BB Liquidating vs. Fox Corp Class | BB Liquidating vs. Paramount Global Class | BB Liquidating vs. Live Current Media |
| Liberty Media vs. Atlanta Braves Holdings, | Liberty Media vs. Madison Square Garden | Liberty Media vs. News Corp B | Liberty Media vs. News Corp A |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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