Correlation Between Liberty Media and Aftermaster
Can any of the company-specific risk be diversified away by investing in both Liberty Media and Aftermaster 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 Media and Aftermaster into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Media and Aftermaster, you can compare the effects of market volatilities on Liberty Media and Aftermaster 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 Media with a short position of Aftermaster. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Media and Aftermaster.
Diversification Opportunities for Liberty Media and Aftermaster
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Liberty and Aftermaster is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Media and Aftermaster in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aftermaster and Liberty Media 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 Media are associated (or correlated) with Aftermaster. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aftermaster has no effect on the direction of Liberty Media i.e., Liberty Media and Aftermaster go up and down completely randomly.
Pair Corralation between Liberty Media and Aftermaster
If you would invest 8,006 in Liberty Media on August 28, 2024 and sell it today you would earn a total of 783.00 from holding Liberty Media or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liberty Media vs. Aftermaster
Performance |
| Timeline |
| Liberty Media |
| Aftermaster |
Liberty Media and Aftermaster Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Media and Aftermaster
The main advantage of trading using opposite Liberty Media and Aftermaster positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Media position performs unexpectedly, Aftermaster 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 Aftermaster will offset losses from the drop in Aftermaster's long position.| Liberty Media vs. Atlanta Braves Holdings, | Liberty Media vs. News Corp B | Liberty Media vs. News Corp A | Liberty Media vs. Atlanta Braves Holdings, |
| Aftermaster vs. FitLife Brands, Common | Aftermaster vs. HUMANA INC | Aftermaster vs. SCOR PK | Aftermaster vs. Aquagold International |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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