Correlation Between Liberty Media and Gray Television
Can any of the company-specific risk be diversified away by investing in both Liberty Media and Gray Television 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 Gray Television into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Media and Gray Television, you can compare the effects of market volatilities on Liberty Media and Gray Television 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 Gray Television. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Media and Gray Television.
Diversification Opportunities for Liberty Media and Gray Television
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Liberty and Gray is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Media and Gray Television in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gray Television 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 Gray Television. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gray Television has no effect on the direction of Liberty Media i.e., Liberty Media and Gray Television go up and down completely randomly.
Pair Corralation between Liberty Media and Gray Television
If you would invest (100.00) in Liberty Media on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Liberty Media or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Liberty Media vs. Gray Television
Performance |
| Timeline |
| Liberty Media |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Gray Television |
Liberty Media and Gray Television Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Media and Gray Television
The main advantage of trading using opposite Liberty Media and Gray Television positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Media position performs unexpectedly, Gray Television 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 Gray Television will offset losses from the drop in Gray Television's long position.| Liberty Media vs. E W Scripps | Liberty Media vs. Gray Television | Liberty Media vs. Saga Communications | Liberty Media vs. Cumulus Media Class |
| Gray Television vs. E W Scripps | Gray Television vs. Saga Communications | Gray Television vs. iHeartMedia Class A | Gray Television vs. Cumulus Media Class |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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