Correlation Between Calibre Mining and Liberty Broadband
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Liberty Broadband 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 Calibre Mining and Liberty Broadband into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calibre Mining Corp and Liberty Broadband, you can compare the effects of market volatilities on Calibre Mining and Liberty Broadband 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 Calibre Mining with a short position of Liberty Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Liberty Broadband.
Diversification Opportunities for Calibre Mining and Liberty Broadband
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calibre and Liberty is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Liberty Broadband in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Broadband and Calibre Mining 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 Calibre Mining Corp are associated (or correlated) with Liberty Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Broadband has no effect on the direction of Calibre Mining i.e., Calibre Mining and Liberty Broadband go up and down completely randomly.
Pair Corralation between Calibre Mining and Liberty Broadband
Assuming the 90 days trading horizon Calibre Mining is expected to generate 1.41 times less return on investment than Liberty Broadband. But when comparing it to its historical volatility, Calibre Mining Corp is 1.12 times less risky than Liberty Broadband. It trades about 0.08 of its potential returns per unit of risk. Liberty Broadband is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4,520 in Liberty Broadband on October 12, 2024 and sell it today you would earn a total of 2,730 from holding Liberty Broadband or generate 60.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. Liberty Broadband
Performance |
| Timeline |
| Calibre Mining Corp |
| Liberty Broadband |
Calibre Mining and Liberty Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Liberty Broadband
The main advantage of trading using opposite Calibre Mining and Liberty Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Liberty Broadband 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 Broadband will offset losses from the drop in Liberty Broadband's long position.| Calibre Mining vs. PennantPark Investment | Calibre Mining vs. CVW CLEANTECH INC | Calibre Mining vs. SLR Investment Corp | Calibre Mining vs. Ultra Clean Holdings |
| Liberty Broadband vs. GREENX METALS LTD | Liberty Broadband vs. JD SPORTS FASH | Liberty Broadband vs. Charter Communications | Liberty Broadband vs. TELECOM ITALIA |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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