Correlation Between Liberty Broadband and Nexstar Broadcasting
Can any of the company-specific risk be diversified away by investing in both Liberty Broadband and Nexstar Broadcasting 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 Nexstar Broadcasting 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 Nexstar Broadcasting Group, you can compare the effects of market volatilities on Liberty Broadband and Nexstar Broadcasting 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 Nexstar Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Broadband and Nexstar Broadcasting.
Diversification Opportunities for Liberty Broadband and Nexstar Broadcasting
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Liberty and Nexstar is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Broadband Srs and Nexstar Broadcasting Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexstar Broadcasting 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 Nexstar Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexstar Broadcasting has no effect on the direction of Liberty Broadband i.e., Liberty Broadband and Nexstar Broadcasting go up and down completely randomly.
Pair Corralation between Liberty Broadband and Nexstar Broadcasting
Assuming the 90 days horizon Liberty Broadband Srs is expected to under-perform the Nexstar Broadcasting. In addition to that, Liberty Broadband is 1.71 times more volatile than Nexstar Broadcasting Group. It trades about -0.18 of its total potential returns per unit of risk. Nexstar Broadcasting Group is currently generating about 0.19 per unit of volatility. If you would invest 17,086 in Nexstar Broadcasting Group on June 11, 2025 and sell it today you would earn a total of 3,741 from holding Nexstar Broadcasting Group or generate 21.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liberty Broadband Srs vs. Nexstar Broadcasting Group
Performance |
| Timeline |
| Liberty Broadband Srs |
| Nexstar Broadcasting |
Liberty Broadband and Nexstar Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Broadband and Nexstar Broadcasting
The main advantage of trading using opposite Liberty Broadband and Nexstar Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Broadband position performs unexpectedly, Nexstar Broadcasting 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 Nexstar Broadcasting will offset losses from the drop in Nexstar Broadcasting's long position.| Liberty Broadband vs. Cable One | Liberty Broadband vs. Liberty Broadband Corp | Liberty Broadband vs. Telkom Indonesia Tbk | Liberty Broadband vs. Liberty Global PLC |
| Nexstar Broadcasting vs. Sinclair Broadcast Group | Nexstar Broadcasting vs. News Corp A | Nexstar Broadcasting vs. Liberty Media | Nexstar Broadcasting vs. Liberty Media |
Check out your portfolio center.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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |