Correlation Between FingerMotion and Liberty Media
Can any of the company-specific risk be diversified away by investing in both FingerMotion 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 FingerMotion and Liberty Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FingerMotion and Liberty Media, you can compare the effects of market volatilities on FingerMotion 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 FingerMotion with a short position of Liberty Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of FingerMotion and Liberty Media.
Diversification Opportunities for FingerMotion and Liberty Media
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FingerMotion and Liberty is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding FingerMotion and Liberty Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Media and FingerMotion 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 FingerMotion 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 FingerMotion i.e., FingerMotion and Liberty Media go up and down completely randomly.
Pair Corralation between FingerMotion and Liberty Media
Given the investment horizon of 90 days FingerMotion is expected to generate 1.05 times less return on investment than Liberty Media. In addition to that, FingerMotion is 4.3 times more volatile than Liberty Media. It trades about 0.01 of its total potential returns per unit of risk. Liberty Media is currently generating about 0.06 per unit of volatility. If you would invest 5,116 in Liberty Media on August 27, 2024 and sell it today you would earn a total of 2,629 from holding Liberty Media or generate 51.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FingerMotion vs. Liberty Media
Performance |
| Timeline |
| FingerMotion |
| Liberty Media |
FingerMotion and Liberty Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FingerMotion and Liberty Media
The main advantage of trading using opposite FingerMotion and Liberty Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FingerMotion 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.| FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. Ribbon Communications | FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. Shenandoah Telecommunications Co |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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