Correlation Between ITV Plc and Liberty Media
Can any of the company-specific risk be diversified away by investing in both ITV Plc 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 ITV Plc and Liberty Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITV plc and Liberty Media, you can compare the effects of market volatilities on ITV Plc 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 ITV Plc with a short position of Liberty Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITV Plc and Liberty Media.
Diversification Opportunities for ITV Plc and Liberty Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ITV and Liberty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ITV plc and Liberty Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Media and ITV Plc 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 ITV plc 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 ITV Plc i.e., ITV Plc and Liberty Media go up and down completely randomly.
Pair Corralation between ITV Plc and Liberty Media
If you would invest 89.00 in ITV plc on January 8, 2025 and sell it today you would earn a total of 3.00 from holding ITV plc or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ITV plc vs. Liberty Media
Performance |
| Timeline |
| ITV plc |
| Liberty Media |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ITV Plc and Liberty Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITV Plc and Liberty Media
The main advantage of trading using opposite ITV Plc and Liberty Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITV Plc 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.| ITV Plc vs. ProSiebenSat1 Media AG | ITV Plc vs. RTL Group SA | ITV Plc vs. iHeartMedia | ITV Plc vs. TV Azteca SAB |
| Liberty Media vs. Saga Communications | Liberty Media vs. Cumulus Media Class | Liberty Media vs. E W Scripps | Liberty Media vs. Gray Television |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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