Correlation Between Liberty Broadband and Anterix
Can any of the company-specific risk be diversified away by investing in both Liberty Broadband and Anterix 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 Anterix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Broadband Srs and Anterix, you can compare the effects of market volatilities on Liberty Broadband and Anterix 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 Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Broadband and Anterix.
Diversification Opportunities for Liberty Broadband and Anterix
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Liberty and Anterix is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Broadband Srs and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix 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 Srs are associated (or correlated) with Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Liberty Broadband i.e., Liberty Broadband and Anterix go up and down completely randomly.
Pair Corralation between Liberty Broadband and Anterix
Assuming the 90 days horizon Liberty Broadband Srs is expected to generate 1.7 times more return on investment than Anterix. However, Liberty Broadband is 1.7 times more volatile than Anterix. It trades about 0.1 of its potential returns per unit of risk. Anterix is currently generating about 0.0 per unit of risk. If you would invest 8,092 in Liberty Broadband Srs on August 27, 2024 and sell it today you would earn a total of 537.00 from holding Liberty Broadband Srs or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liberty Broadband Srs vs. Anterix
Performance |
| Timeline |
| Liberty Broadband Srs |
| Anterix |
Liberty Broadband and Anterix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Broadband and Anterix
The main advantage of trading using opposite Liberty Broadband and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Broadband position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.| Liberty Broadband vs. KT Corporation | Liberty Broadband vs. Cable One | Liberty Broadband vs. Liberty Global PLC | Liberty Broadband vs. Liberty Latin America |
| Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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