Correlation Between Liberty Broadband and Global Tech

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

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

Diversification Opportunities for Liberty Broadband and Global Tech

-0.18

Correlation Coefficient

Liberty Broadband  Global Tech

Good diversification

The 3 months correlation between Liberty and Global is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Broadband Srs and Global Tech Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Tech Industries and Liberty Broadband 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 Broadband Srs are associated (or correlated) with Global Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Tech Industries has no effect on the direction of Liberty Broadband i.e., Liberty Broadband and Global Tech go up and down completely randomly.

Pair Corralation between Liberty Broadband and Global Tech

Assuming the 90 days horizon Liberty Broadband Srs is expected to under-perform the Global Tech. But the stock apears to be less risky and, when comparing its historical volatility, Liberty Broadband Srs is 15.17 times less risky than Global Tech. The stock trades about -0.16 of its potential returns per unit of risk. The Global Tech Industries is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  10.00  in Global Tech Industries on May 5, 2025 and sell it today you would earn a total of  7.00  from holding Global Tech Industries or generate 70.0% return on investment over 90 days.

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

Liberty Broadband Srs  vs.  Global Tech Industries

Liberty Broadband Srs

Risk-Adjusted Performance

Very Weak

Over the last 90 days Liberty Broadband Srs has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Global Tech Industries

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global Tech Industries are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Global Tech demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Liberty Broadband and Global Tech

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

The idea behind Liberty Broadband Srs and Global Tech Industries 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.