Correlation Between Liberty Braves and Marcus

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

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

Diversification Opportunities for Liberty Braves and Marcus

-0.55

Correlation Coefficient

Liberty Braves  Marcus

Excellent diversification

The 3 months correlation between Liberty and Marcus is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding The Liberty Braves and Marcus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus and Liberty Braves 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 The Liberty Braves are associated (or correlated) with Marcus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus has no effect on the direction of Liberty Braves i.e., Liberty Braves and Marcus go up and down completely randomly.

Pair Corralation between Liberty Braves and Marcus

If you would invest  1,411  in Marcus on August 30, 2024 and sell it today you would earn a total of  837.00  from holding Marcus or generate 59.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

The Liberty Braves  vs.  Marcus

Liberty Braves

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Liberty Braves has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Liberty Braves is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Marcus

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Marcus are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, Marcus unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Liberty Braves and Marcus

The main advantage of trading using opposite Liberty Braves and Marcus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Braves position performs unexpectedly, Marcus 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 Marcus will offset losses from the drop in Marcus' long position.

The idea behind The Liberty Braves and Marcus 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.