Correlation Between Liberty Media and BB Liquidating

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Liberty Media and BB Liquidating 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 Media and BB Liquidating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Media and BB Liquidating B, you can compare the effects of market volatilities on Liberty Media and BB Liquidating 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 Media with a short position of BB Liquidating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Media and BB Liquidating.

Diversification Opportunities for Liberty Media and BB Liquidating

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Liberty and BLIBQ is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Media and BB Liquidating B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Liquidating B and Liberty Media 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 Liberty Media are associated (or correlated) with BB Liquidating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Liquidating B has no effect on the direction of Liberty Media i.e., Liberty Media and BB Liquidating go up and down completely randomly.

Pair Corralation between Liberty Media and BB Liquidating

If you would invest  6,986  in Liberty Media on September 5, 2024 and sell it today you would earn a total of  1,092  from holding Liberty Media or generate 15.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy1.56%
ValuesDaily Returns

Liberty Media  vs.  BB Liquidating B

 Performance 
       Timeline  
Liberty Media 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Liberty Media are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Liberty Media sustained solid returns over the last few months and may actually be approaching a breakup point.
BB Liquidating B 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days BB Liquidating B has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, BB Liquidating is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Liberty Media and BB Liquidating Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Liberty Media and BB Liquidating

The main advantage of trading using opposite Liberty Media and BB Liquidating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Media position performs unexpectedly, BB Liquidating 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 BB Liquidating will offset losses from the drop in BB Liquidating's long position.
The idea behind Liberty Media and BB Liquidating B 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

Other Complementary Tools

Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Commodity Directory
Find actively traded commodities issued by global exchanges