Correlation Between Liberty Broadband and ATN International
Can any of the company-specific risk be diversified away by investing in both Liberty Broadband and ATN International 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 ATN International 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 ATN International, you can compare the effects of market volatilities on Liberty Broadband and ATN International 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 ATN International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Broadband and ATN International.
Diversification Opportunities for Liberty Broadband and ATN International
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Liberty and ATN is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Broadband Srs and ATN International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATN International 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 ATN International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATN International has no effect on the direction of Liberty Broadband i.e., Liberty Broadband and ATN International go up and down completely randomly.
Pair Corralation between Liberty Broadband and ATN International
Assuming the 90 days horizon Liberty Broadband Srs is expected to generate 0.91 times more return on investment than ATN International. However, Liberty Broadband Srs is 1.1 times less risky than ATN International. It trades about 0.03 of its potential returns per unit of risk. ATN International is currently generating about -0.11 per unit of risk. If you would invest 7,546 in Liberty Broadband Srs on November 3, 2024 and sell it today you would earn a total of 57.00 from holding Liberty Broadband Srs or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liberty Broadband Srs vs. ATN International
Performance |
| Timeline |
| Liberty Broadband Srs |
| ATN International |
Liberty Broadband and ATN International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Broadband and ATN International
The main advantage of trading using opposite Liberty Broadband and ATN International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Broadband position performs unexpectedly, ATN International 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 ATN International will offset losses from the drop in ATN International'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 |
| ATN International vs. KT Corporation | ATN International vs. SK Telecom Co | ATN International vs. Ooma Inc | ATN International vs. Liberty Broadband Srs |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |