Correlation Between Liberty Media and Emera Maine
Can any of the company-specific risk be diversified away by investing in both Liberty Media and Emera Maine 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 Media and Emera Maine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Media and Emera Maine PFD, you can compare the effects of market volatilities on Liberty Media and Emera Maine 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 Media with a short position of Emera Maine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Media and Emera Maine.
Diversification Opportunities for Liberty Media and Emera Maine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Liberty and Emera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Media and Emera Maine PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emera Maine PFD and Liberty Media 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 Media are associated (or correlated) with Emera Maine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emera Maine PFD has no effect on the direction of Liberty Media i.e., Liberty Media and Emera Maine go up and down completely randomly.
Pair Corralation between Liberty Media and Emera Maine
Assuming the 90 days horizon Liberty Media is expected to generate 84.01 times more return on investment than Emera Maine. However, Liberty Media is 84.01 times more volatile than Emera Maine PFD. It trades about 0.04 of its potential returns per unit of risk. Emera Maine PFD is currently generating about 0.0 per unit of risk. If you would invest 1,490 in Liberty Media on August 29, 2024 and sell it today you would earn a total of 5,738 from holding Liberty Media or generate 385.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 31.2% |
| Values | Daily Returns |
Liberty Media vs. Emera Maine PFD
Performance |
| Timeline |
| Liberty Media |
| Emera Maine PFD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Liberty Media and Emera Maine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Media and Emera Maine
The main advantage of trading using opposite Liberty Media and Emera Maine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Media position performs unexpectedly, Emera Maine 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 Emera Maine will offset losses from the drop in Emera Maine's long position.| Liberty Media vs. Imax Corp | Liberty Media vs. Liberty Media | Liberty Media vs. Liberty Media | Liberty Media vs. Liberty Media |
| Emera Maine vs. NetEase | Emera Maine vs. PennantPark Investment | Emera Maine vs. Ainsworth Game Technology | Emera Maine vs. Barrick Gold Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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