Correlation Between Sobr Safe and Liberty Broadband

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

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

Diversification Opportunities for Sobr Safe and Liberty Broadband

-0.34

Correlation Coefficient

Sobr Safe  Liberty Broadband

Very good diversification

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

Pair Corralation between Sobr Safe and Liberty Broadband

Given the investment horizon of 90 days Sobr Safe is expected to generate 2.44 times more return on investment than Liberty Broadband. However, Sobr Safe is 2.44 times more volatile than Liberty Broadband Srs. It trades about 0.04 of its potential returns per unit of risk. Liberty Broadband Srs is currently generating about -0.17 per unit of risk. If you would invest  350.00  in Sobr Safe on May 5, 2025 and sell it today you would earn a total of  17.00  from holding Sobr Safe or generate 4.86% return on investment over 90 days.

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

Sobr Safe  vs.  Liberty Broadband Srs

Sobr Safe

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sobr Safe are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating fundamental drivers, Sobr Safe reported solid returns over the last few months and may actually be approaching a breakup point.

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 unfluctuating performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Sobr Safe and Liberty Broadband

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

The idea behind Sobr Safe and Liberty Broadband Srs 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.