Correlation Between News Corp and Liberty Braves

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

By analyzing existing cross correlation between News Corp B and The Liberty Braves, you can compare the effects of market volatilities on News Corp and Liberty Braves 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 News Corp with a short position of Liberty Braves. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and Liberty Braves.

Diversification Opportunities for News Corp and Liberty Braves

0.34

Correlation Coefficient

News Corp  Liberty Braves

Weak diversification

The 3 months correlation between News and Liberty is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding News Corp B and The Liberty Braves in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Braves and News Corp 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 News Corp B are associated (or correlated) with Liberty Braves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Braves has no effect on the direction of News Corp i.e., News Corp and Liberty Braves go up and down completely randomly.

Pair Corralation between News Corp and Liberty Braves

Considering the 90-day investment horizon News Corp is expected to generate 1.47 times less return on investment than Liberty Braves. But when comparing it to its historical volatility, News Corp B is 4.63 times less risky than Liberty Braves. It trades about 0.08 of its potential returns per unit of risk. The Liberty Braves is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  6,250  in The Liberty Braves on May 6, 2025 and sell it today you would earn a total of  25.00  from holding The Liberty Braves or generate 0.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

News Corp B  vs.  The Liberty Braves

News Corp B

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in News Corp B are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, News Corp is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Liberty Braves

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in The Liberty Braves are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Liberty Braves may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with News Corp and Liberty Braves

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

The idea behind News Corp B and The Liberty Braves 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.