Correlation Between Dolphin Entertainment and Liberty Media

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

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

Diversification Opportunities for Dolphin Entertainment and Liberty Media

0.13

Correlation Coefficient

Dolphin Entertainment  Liberty Media

Average diversification

The 3 months correlation between Dolphin and Liberty is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dolphin Entertainment and Liberty Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Media and Dolphin Entertainment 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 Dolphin Entertainment 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 Dolphin Entertainment i.e., Dolphin Entertainment and Liberty Media go up and down completely randomly.

Pair Corralation between Dolphin Entertainment and Liberty Media

Given the investment horizon of 90 days Dolphin Entertainment is expected to generate 2.55 times more return on investment than Liberty Media. However, Dolphin Entertainment is 2.55 times more volatile than Liberty Media. It trades about 0.03 of its potential returns per unit of risk. Liberty Media is currently generating about -0.04 per unit of risk. If you would invest  104.00  in Dolphin Entertainment on December 30, 2024 and sell it today you would earn a total of  1.00  from holding Dolphin Entertainment or generate 0.96% return on investment over 90 days.

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

Dolphin Entertainment  vs.  Liberty Media

Dolphin Entertainment

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Dolphin Entertainment are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Dolphin Entertainment may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Liberty Media

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Dolphin Entertainment and Liberty Media

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

The idea behind Dolphin Entertainment and Liberty Media 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.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.