Correlation Between Liberty Broadband and Com GuardCom

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Can any of the company-specific risk be diversified away by investing in both Liberty Broadband and Com GuardCom 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 Com GuardCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Broadband and Com GuardCom, you can compare the effects of market volatilities on Liberty Broadband and Com GuardCom 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 Com GuardCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Broadband and Com GuardCom.

Diversification Opportunities for Liberty Broadband and Com GuardCom

-0.04
  Correlation Coefficient

Good diversification

The 3 months correlation between Liberty and Com is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Broadband and Com GuardCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Com GuardCom 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 are associated (or correlated) with Com GuardCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Com GuardCom has no effect on the direction of Liberty Broadband i.e., Liberty Broadband and Com GuardCom go up and down completely randomly.

Pair Corralation between Liberty Broadband and Com GuardCom

Assuming the 90 days horizon Liberty Broadband is expected to generate 0.08 times more return on investment than Com GuardCom. However, Liberty Broadband is 12.83 times less risky than Com GuardCom. It trades about -0.22 of its potential returns per unit of risk. Com GuardCom is currently generating about -0.06 per unit of risk. If you would invest  4,900  in Liberty Broadband on September 10, 2025 and sell it today you would lose (217.00) from holding Liberty Broadband or give up 4.43% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Liberty Broadband  vs.  Com GuardCom

 Performance 
       Timeline  
Liberty Broadband 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Liberty Broadband has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.
Com GuardCom 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Com GuardCom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather weak basic indicators, Com GuardCom may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Liberty Broadband and Com GuardCom Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Liberty Broadband and Com GuardCom

The main advantage of trading using opposite Liberty Broadband and Com GuardCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Broadband position performs unexpectedly, Com GuardCom 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 Com GuardCom will offset losses from the drop in Com GuardCom's long position.
The idea behind Liberty Broadband and Com GuardCom 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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