Correlation Between Genius Sports and Liberty Tripadvisor

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

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

Diversification Opportunities for Genius Sports and Liberty Tripadvisor

-0.37

Correlation Coefficient

Genius Sports  Liberty Tripadvisor

Very good diversification

The 3 months correlation between Genius and Liberty is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Genius Sports and Liberty Tripadvisor Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Tripadvisor and Genius Sports 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 Genius Sports are associated (or correlated) with Liberty Tripadvisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Tripadvisor has no effect on the direction of Genius Sports i.e., Genius Sports and Liberty Tripadvisor go up and down completely randomly.

Pair Corralation between Genius Sports and Liberty Tripadvisor

If you would invest  929.00  in Liberty Tripadvisor Holdings on February 3, 2024 and sell it today you would earn a total of  0.00  from holding Liberty Tripadvisor Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.35%
Values	Daily Returns

Genius Sports  vs.  Liberty Tripadvisor Holdings

Genius Sports

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genius Sports has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in June 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Liberty Tripadvisor

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with Genius Sports and Liberty Tripadvisor

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

The idea behind Genius Sports and Liberty Tripadvisor Holdings 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.