Correlation Between Liberty Broadband and FingerMotion
Can any of the company-specific risk be diversified away by investing in both Liberty Broadband and FingerMotion 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 FingerMotion 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 FingerMotion, you can compare the effects of market volatilities on Liberty Broadband and FingerMotion 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 FingerMotion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Broadband and FingerMotion.
Diversification Opportunities for Liberty Broadband and FingerMotion
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liberty and FingerMotion is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Broadband Srs and FingerMotion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FingerMotion 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 FingerMotion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FingerMotion has no effect on the direction of Liberty Broadband i.e., Liberty Broadband and FingerMotion go up and down completely randomly.
Pair Corralation between Liberty Broadband and FingerMotion
Assuming the 90 days horizon Liberty Broadband Srs is expected to generate 0.61 times more return on investment than FingerMotion. However, Liberty Broadband Srs is 1.64 times less risky than FingerMotion. It trades about 0.02 of its potential returns per unit of risk. FingerMotion is currently generating about -0.04 per unit of risk. If you would invest 8,311 in Liberty Broadband Srs on August 24, 2024 and sell it today you would earn a total of 338.00 from holding Liberty Broadband Srs or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Liberty Broadband Srs vs. FingerMotion
Performance |
| Timeline |
| Liberty Broadband Srs |
| FingerMotion |
Liberty Broadband and FingerMotion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Broadband and FingerMotion
The main advantage of trading using opposite Liberty Broadband and FingerMotion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Broadband position performs unexpectedly, FingerMotion 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 FingerMotion will offset losses from the drop in FingerMotion's long position.| Liberty Broadband vs. Cable One | Liberty Broadband vs. Liberty Broadband Corp | Liberty Broadband vs. Telkom Indonesia Tbk | Liberty Broadband vs. Liberty Global PLC |
| FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. KT Corporation | FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. Consolidated Communications |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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