Correlation Between Liberty Broadband and Global X
Can any of the company-specific risk be diversified away by investing in both Liberty Broadband and Global X 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 Broadband and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Broadband and Global X Funds, you can compare the effects of market volatilities on Liberty Broadband and Global X 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 Broadband with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Broadband and Global X.
Diversification Opportunities for Liberty Broadband and Global X
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Liberty and Global is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Broadband and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and Liberty Broadband 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 Broadband are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of Liberty Broadband i.e., Liberty Broadband and Global X go up and down completely randomly.
Pair Corralation between Liberty Broadband and Global X
Assuming the 90 days trading horizon Liberty Broadband is expected to generate 3.49 times less return on investment than Global X. In addition to that, Liberty Broadband is 1.81 times more volatile than Global X Funds. It trades about 0.01 of its total potential returns per unit of risk. Global X Funds is currently generating about 0.08 per unit of volatility. If you would invest 3,120 in Global X Funds on October 27, 2024 and sell it today you would earn a total of 2,005 from holding Global X Funds or generate 64.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.99% |
| Values | Daily Returns |
Liberty Broadband vs. Global X Funds
Performance |
| Timeline |
| Liberty Broadband |
| Global X Funds |
Liberty Broadband and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Broadband and Global X
The main advantage of trading using opposite Liberty Broadband and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Broadband position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Liberty Broadband vs. Arrow Electronics, | Liberty Broadband vs. Metalurgica Gerdau SA | Liberty Broadband vs. Multilaser Industrial SA | Liberty Broadband vs. Datadog, |
| Global X vs. Zoom Video Communications | Global X vs. Nordon Indstrias Metalrgicas | Global X vs. Marfrig Global Foods | Global X vs. American Airlines Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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