Correlation Between Liberty Tripadvisor and Fiverr International

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

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

Diversification Opportunities for Liberty Tripadvisor and Fiverr International

0.0

Correlation Coefficient

Liberty Tripadvisor  Fiverr International

Pay attention - limited upside

The 3 months correlation between Liberty and Fiverr is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Tripadvisor Holdings and Fiverr International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiverr International and Liberty Tripadvisor 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 Tripadvisor Holdings are associated (or correlated) with Fiverr International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiverr International has no effect on the direction of Liberty Tripadvisor i.e., Liberty Tripadvisor and Fiverr International go up and down completely randomly.

Pair Corralation between Liberty Tripadvisor and Fiverr International

If you would invest  3,065  in Fiverr International on November 20, 2024 and sell it today you would earn a total of  271.00  from holding Fiverr International or generate 8.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Liberty Tripadvisor Holdings  vs.  Fiverr International

Liberty Tripadvisor

Risk-Adjusted Performance

Very Weak

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

Fiverr International

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fiverr International are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Fiverr International may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Liberty Tripadvisor and Fiverr International

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

The idea behind Liberty Tripadvisor Holdings and Fiverr International 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.