Correlation Between Liberty Media and Calbee
Can any of the company-specific risk be diversified away by investing in both Liberty Media and Calbee 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 Calbee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Media and Calbee Inc, you can compare the effects of market volatilities on Liberty Media and Calbee 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 Calbee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Media and Calbee.
Diversification Opportunities for Liberty Media and Calbee
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liberty and Calbee is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Media and Calbee Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calbee Inc 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 Calbee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calbee Inc has no effect on the direction of Liberty Media i.e., Liberty Media and Calbee go up and down completely randomly.
Pair Corralation between Liberty Media and Calbee
Assuming the 90 days horizon Liberty Media is expected to generate 0.7 times more return on investment than Calbee. However, Liberty Media is 1.42 times less risky than Calbee. It trades about 0.07 of its potential returns per unit of risk. Calbee Inc is currently generating about 0.01 per unit of risk. If you would invest 3,768 in Liberty Media on January 17, 2025 and sell it today you would earn a total of 2,930 from holding Liberty Media or generate 77.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.44% |
| Values | Daily Returns |
Liberty Media vs. Calbee Inc
Performance |
| Timeline |
| Liberty Media |
| Calbee Inc |
Liberty Media and Calbee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Media and Calbee
The main advantage of trading using opposite Liberty Media and Calbee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Media position performs unexpectedly, Calbee 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 Calbee will offset losses from the drop in Calbee's long position.| Liberty Media vs. Titan International | Liberty Media vs. Playa Hotels Resorts | Liberty Media vs. Cementos Pacasmayo SAA | Liberty Media vs. Griffon |
| Calbee vs. Toyo Suisan Kaisha | Calbee vs. Treehouse Foods | Calbee vs. John B Sanfilippo | Calbee vs. Campbell Soup |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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