Correlation Between Liberty Media and Mediaco Holding
Can any of the company-specific risk be diversified away by investing in both Liberty Media and Mediaco Holding 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 Mediaco Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Media and Mediaco Holding, you can compare the effects of market volatilities on Liberty Media and Mediaco Holding 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 Mediaco Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Media and Mediaco Holding.
Diversification Opportunities for Liberty Media and Mediaco Holding
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Liberty and Mediaco is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Media and Mediaco Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediaco Holding 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 Mediaco Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediaco Holding has no effect on the direction of Liberty Media i.e., Liberty Media and Mediaco Holding go up and down completely randomly.
Pair Corralation between Liberty Media and Mediaco Holding
If you would invest 2,251 in Liberty Media on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Liberty Media or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Liberty Media vs. Mediaco Holding
Performance |
| Timeline |
| Liberty Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mediaco Holding |
Liberty Media and Mediaco Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Media and Mediaco Holding
The main advantage of trading using opposite Liberty Media and Mediaco Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Media position performs unexpectedly, Mediaco Holding 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 Mediaco Holding will offset losses from the drop in Mediaco Holding'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 |
| Mediaco Holding vs. E W Scripps | Mediaco Holding vs. Saga Communications | Mediaco Holding vs. iHeartMedia Class A | Mediaco Holding 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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