Correlation Between Marchex and Liberty Media
Can any of the company-specific risk be diversified away by investing in both Marchex and Liberty Media 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 Marchex and Liberty Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marchex and Liberty Media, you can compare the effects of market volatilities on Marchex and Liberty Media 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 Marchex with a short position of Liberty Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marchex and Liberty Media.
Diversification Opportunities for Marchex and Liberty Media
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marchex and Liberty is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Marchex and Liberty Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Media and Marchex 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 Marchex are associated (or correlated) with Liberty Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Media has no effect on the direction of Marchex i.e., Marchex and Liberty Media go up and down completely randomly.
Pair Corralation between Marchex and Liberty Media
Given the investment horizon of 90 days Marchex is expected to generate 2.72 times less return on investment than Liberty Media. In addition to that, Marchex is 1.76 times more volatile than Liberty Media. It trades about 0.06 of its total potential returns per unit of risk. Liberty Media is currently generating about 0.26 per unit of volatility. If you would invest 3,756 in Liberty Media on August 24, 2024 and sell it today you would earn a total of 3,263 from holding Liberty Media or generate 86.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marchex vs. Liberty Media
Performance |
| Timeline |
| Marchex |
| Liberty Media |
Marchex and Liberty Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marchex and Liberty Media
The main advantage of trading using opposite Marchex and Liberty Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marchex position performs unexpectedly, Liberty Media 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 Liberty Media will offset losses from the drop in Liberty Media's long position.| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
| Liberty Media vs. Comstock Holding Companies | Liberty Media vs. Jeld Wen Holding | Liberty Media vs. MYR Group | Liberty Media vs. PennantPark Investment |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |