Correlation Between Liberty Broadband and Shenandoah Telecommunicatio

Can any of the company-specific risk be diversified away by investing in both Liberty Broadband and Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio 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 Shenandoah Telecommunications Co, you can compare the effects of market volatilities on Liberty Broadband and Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Broadband and Shenandoah Telecommunicatio.

Diversification Opportunities for Liberty Broadband and Shenandoah Telecommunicatio

-0.21

Correlation Coefficient

Liberty Broadband  Shenandoah Telecommunicatio

Very good diversification

The 3 months correlation between Liberty and Shenandoah is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Broadband Srs and Shenandoah Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenandoah Telecommunicatio has no effect on the direction of Liberty Broadband i.e., Liberty Broadband and Shenandoah Telecommunicatio go up and down completely randomly.

Pair Corralation between Liberty Broadband and Shenandoah Telecommunicatio

Assuming the 90 days horizon Liberty Broadband Srs is expected to under-perform the Shenandoah Telecommunicatio. In addition to that, Liberty Broadband is 1.21 times more volatile than Shenandoah Telecommunications Co. It trades about -0.18 of its total potential returns per unit of risk. Shenandoah Telecommunications Co is currently generating about 0.08 per unit of volatility. If you would invest  1,156  in Shenandoah Telecommunications Co on May 7, 2025 and sell it today you would earn a total of  135.00  from holding Shenandoah Telecommunications Co or generate 11.68% 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.  Shenandoah Telecommunications

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.

Shenandoah Telecommunicatio

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Shenandoah Telecommunications Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, Shenandoah Telecommunicatio displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Liberty Broadband and Shenandoah Telecommunicatio

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

The idea behind Liberty Broadband Srs and Shenandoah Telecommunications Co 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.