Correlation Between GREENX METALS and Liberty Broadband

Can any of the company-specific risk be diversified away by investing in both GREENX METALS 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 GREENX METALS and Liberty Broadband into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GREENX METALS LTD and Liberty Broadband, you can compare the effects of market volatilities on GREENX METALS 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 GREENX METALS with a short position of Liberty Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Liberty Broadband.

Diversification Opportunities for GREENX METALS and Liberty Broadband

0.0

Correlation Coefficient

GREENX METALS  Liberty Broadband

Pay attention - limited upside

The 3 months correlation between GREENX and Liberty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Liberty Broadband in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Broadband and GREENX METALS 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 GREENX METALS LTD 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 GREENX METALS i.e., GREENX METALS and Liberty Broadband go up and down completely randomly.

Pair Corralation between GREENX METALS and Liberty Broadband

Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 1.85 times more return on investment than Liberty Broadband. However, GREENX METALS is 1.85 times more volatile than Liberty Broadband. It trades about 0.01 of its potential returns per unit of risk. Liberty Broadband is currently generating about 0.02 per unit of risk. If you would invest  51.00  in GREENX METALS LTD on September 23, 2024 and sell it today you would lose (11.00) from holding GREENX METALS LTD or give up 21.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GREENX METALS LTD  vs.  Liberty Broadband

GREENX METALS LTD

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GREENX METALS LTD are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, GREENX METALS may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Liberty Broadband

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Liberty Broadband are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Liberty Broadband reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GREENX METALS and Liberty Broadband

The main advantage of trading using opposite GREENX METALS and Liberty Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS 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.

The idea behind GREENX METALS LTD and Liberty Broadband pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.