Correlation Between International Growth and Liberty Latin

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

By analyzing existing cross correlation between International Growth Fund and Liberty Latin America, you can compare the effects of market volatilities on International Growth and Liberty Latin 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 International Growth with a short position of Liberty Latin. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Growth and Liberty Latin.

Diversification Opportunities for International Growth and Liberty Latin

0.0

Correlation Coefficient

International Growth  Liberty Latin

Pay attention - limited upside

The 3 months correlation between International and Liberty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding International Growth Fund and Liberty Latin America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Latin America and International Growth 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 International Growth Fund are associated (or correlated) with Liberty Latin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Latin America has no effect on the direction of International Growth i.e., International Growth and Liberty Latin go up and down completely randomly.

Pair Corralation between International Growth and Liberty Latin

If you would invest  827.00  in Liberty Latin America on March 16, 2024 and sell it today you would earn a total of  12.00  from holding Liberty Latin America or generate 1.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

International Growth Fund  vs.  Liberty Latin America

International Growth

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days International Growth Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, International Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Liberty Latin America

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Liberty Latin America are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Liberty Latin disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with International Growth and Liberty Latin

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

The idea behind International Growth Fund and Liberty Latin America 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.