Liberty Media Stock Volatility
| LLYVK Stock | 72.29 0.38 0.53% |
Liberty Media appears to be very steady, given 3 months investment horizon. Liberty Media has Sharpe Ratio of 0.45, which conveys that the firm had a 0.45% return per unit of risk over the last 3 months. By analyzing Liberty Media's technical indicators, you can evaluate if the expected return of 0.95% is justified by implied risk. Please exercise Liberty Media's Risk Adjusted Performance of 0.358, coefficient of variation of 218.05, and Mean Deviation of 1.4 to check out if our risk estimates are consistent with your expectations. Key indicators related to Liberty Media's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Liberty Media Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Liberty daily returns, and it is calculated using variance and standard deviation. We also use Liberty's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Liberty Media volatility.
Liberty |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Liberty Media at lower prices. For example, an investor can purchase Liberty stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving together with Liberty Stock
| 0.77 | CNK | Cinemark Holdings | PairCorr |
| 0.88 | EDR | Endeavor Group Holdings | PairCorr |
| 0.83 | T | ATT Inc Sell-off Trend | PairCorr |
| 0.75 | Z | Zillow Group Class | PairCorr |
| 0.7 | EA | Electronic Arts | PairCorr |
| 0.63 | KT | KT Corporation | PairCorr |
Moving against Liberty Stock
| 0.79 | TC | TuanChe ADR | PairCorr |
| 0.72 | DLPN | Dolphin Entertainment | PairCorr |
| 0.67 | TU | Telus Corp | PairCorr |
| 0.46 | DRCT | Direct Digital Holdings | PairCorr |
| 0.46 | GDEVW | Nexters Warrant | PairCorr |
Liberty Media Market Sensitivity And Downside Risk
Liberty Media's beta coefficient measures the volatility of Liberty stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Liberty stock's returns against your selected market. In other words, Liberty Media's beta of 1.04 provides an investor with an approximation of how much risk Liberty Media stock can potentially add to one of your existing portfolios. Liberty Media has relatively low volatility with skewness of 1.74 and kurtosis of 4.38. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Liberty Media's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Liberty Media's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Liberty Media Demand TrendCheck current 90 days Liberty Media correlation with market (Dow Jones Industrial)Liberty Beta |
Liberty standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 2.11 |
It is essential to understand the difference between upside risk (as represented by Liberty Media's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Liberty Media's daily returns or price. Since the actual investment returns on holding a position in liberty stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Liberty Media.
Liberty Media Stock Volatility Analysis
Volatility refers to the frequency at which Liberty Media stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Liberty Media's price changes. Investors will then calculate the volatility of Liberty Media's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Liberty Media's volatility:
Historical Volatility
This type of stock volatility measures Liberty Media's fluctuations based on previous trends. It's commonly used to predict Liberty Media's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Liberty Media's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Liberty Media's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Liberty Media Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Liberty Media Projected Return Density Against Market
Assuming the 90 days horizon the stock has the beta coefficient of 1.0449 . This indicates Liberty Media market returns are very sensitive to returns on the market. As the market goes up or down, Liberty Media is expected to follow.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Liberty Media or Entertainment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Liberty Media's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Liberty stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Liberty Media has an alpha of 0.808, implying that it can generate a 0.81 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Liberty Media Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Liberty Media Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Liberty Media is 222.47. The daily returns are distributed with a variance of 4.43 and standard deviation of 2.11. The mean deviation of Liberty Media is currently at 1.45. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.81 | |
β | Beta against Dow Jones | 1.04 | |
σ | Overall volatility | 2.11 | |
Ir | Information ratio | 0.40 |
Liberty Media Stock Return Volatility
Liberty Media historical daily return volatility represents how much of Liberty Media stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 2.1059% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7796% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Liberty Media Volatility
Volatility is a rate at which the price of Liberty Media or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Liberty Media may increase or decrease. In other words, similar to Liberty's beta indicator, it measures the risk of Liberty Media and helps estimate the fluctuations that may happen in a short period of time. So if prices of Liberty Media fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Market Cap | 3.1 B | 2.7 B |
Liberty Media's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Liberty Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Liberty Media's price varies over time.
3 ways to utilize Liberty Media's volatility to invest better
Higher Liberty Media's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Liberty Media stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Liberty Media stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Liberty Media investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Liberty Media's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Liberty Media's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Liberty Media Investment Opportunity
Liberty Media has a volatility of 2.11 and is 2.71 times more volatile than Dow Jones Industrial. 18 percent of all equities and portfolios are less risky than Liberty Media. You can use Liberty Media to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Liberty Media to be traded at 79.52 in 90 days.Weak diversification
The correlation between Liberty Media and DJI is 0.39 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Media and DJI in the same portfolio, assuming nothing else is changed.
Liberty Media Additional Risk Indicators
The analysis of Liberty Media's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Liberty Media's investment and either accepting that risk or mitigating it. Along with some common measures of Liberty Media stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.358 | |||
| Market Risk Adjusted Performance | 0.904 | |||
| Mean Deviation | 1.4 | |||
| Downside Deviation | 1.17 | |||
| Coefficient Of Variation | 218.05 | |||
| Standard Deviation | 2.06 | |||
| Variance | 4.24 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Liberty Media Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Liberty Media as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Liberty Media's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Liberty Media's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Liberty Media.
When determining whether Liberty Media is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Liberty Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Liberty Media Stock. Highlighted below are key reports to facilitate an investment decision about Liberty Media Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Liberty Media. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in real. For more information on how to buy Liberty Stock please use our How to buy in Liberty Stock guide.You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Is Movies & Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Liberty Media. If investors know Liberty will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Liberty Media listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.54) | Return On Assets (0.01) |
The market value of Liberty Media is measured differently than its book value, which is the value of Liberty that is recorded on the company's balance sheet. Investors also form their own opinion of Liberty Media's value that differs from its market value or its book value, called intrinsic value, which is Liberty Media's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Liberty Media's market value can be influenced by many factors that don't directly affect Liberty Media's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Liberty Media's value and its price as these two are different measures arrived at by different means. Investors typically determine if Liberty Media is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Liberty Media's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.