Correlation Between Liberty Media and Eva Live

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Can any of the company-specific risk be diversified away by investing in both Liberty Media and Eva Live 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 Eva Live into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Media and Eva Live, you can compare the effects of market volatilities on Liberty Media and Eva Live 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 Eva Live. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Media and Eva Live.

Diversification Opportunities for Liberty Media and Eva Live

LibertyEvaDiversified AwayLibertyEvaDiversified Away100%
-0.39
  Correlation Coefficient

Very good diversification

The 3 months correlation between Liberty and Eva is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Media and Eva Live in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eva Live 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 Eva Live. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eva Live has no effect on the direction of Liberty Media i.e., Liberty Media and Eva Live go up and down completely randomly.

Pair Corralation between Liberty Media and Eva Live

Assuming the 90 days horizon Liberty Media is expected to generate 7.24 times less return on investment than Eva Live. But when comparing it to its historical volatility, Liberty Media is 10.51 times less risky than Eva Live. It trades about 0.14 of its potential returns per unit of risk. Eva Live is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  255.00  in Eva Live on October 21, 2024 and sell it today you would earn a total of  45.00  from holding Eva Live or generate 17.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.38%
ValuesDaily Returns

Liberty Media  vs.  Eva Live

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -60-40-200
JavaScript chart by amCharts 3.21.15FWONA GOAI
       Timeline  
Liberty Media 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Liberty Media are ranked lower than 10 (%) 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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan727476788082848688
Eva Live 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Eva Live are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, Eva Live demonstrated solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan11.522.53

Liberty Media and Eva Live Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.96-3.72-2.47-1.220.02221.362.674.05.33 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15FWONA GOAI
       Returns  

Pair Trading with Liberty Media and Eva Live

The main advantage of trading using opposite Liberty Media and Eva Live positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Media position performs unexpectedly, Eva Live 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 Eva Live will offset losses from the drop in Eva Live's long position.
The idea behind Liberty Media and Eva Live 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

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