Correlation Between Netmedia Group and Mauna Kea
Can any of the company-specific risk be diversified away by investing in both Netmedia Group and Mauna Kea 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 Netmedia Group and Mauna Kea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netmedia Group SA and Mauna Kea Technologies, you can compare the effects of market volatilities on Netmedia Group and Mauna Kea 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 Netmedia Group with a short position of Mauna Kea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netmedia Group and Mauna Kea.
Diversification Opportunities for Netmedia Group and Mauna Kea
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Netmedia and Mauna is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Netmedia Group SA and Mauna Kea Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mauna Kea Technologies and Netmedia Group 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 Netmedia Group SA are associated (or correlated) with Mauna Kea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mauna Kea Technologies has no effect on the direction of Netmedia Group i.e., Netmedia Group and Mauna Kea go up and down completely randomly.
Pair Corralation between Netmedia Group and Mauna Kea
Assuming the 90 days trading horizon Netmedia Group SA is expected to generate 0.96 times more return on investment than Mauna Kea. However, Netmedia Group SA is 1.04 times less risky than Mauna Kea. It trades about -0.09 of its potential returns per unit of risk. Mauna Kea Technologies is currently generating about -0.24 per unit of risk. If you would invest 240.00 in Netmedia Group SA on September 2, 2024 and sell it today you would lose (60.00) from holding Netmedia Group SA or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netmedia Group SA vs. Mauna Kea Technologies
Performance |
| Timeline |
| Netmedia Group SA |
| Mauna Kea Technologies |
Netmedia Group and Mauna Kea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netmedia Group and Mauna Kea
The main advantage of trading using opposite Netmedia Group and Mauna Kea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netmedia Group position performs unexpectedly, Mauna Kea 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 Mauna Kea will offset losses from the drop in Mauna Kea's long position.| Netmedia Group vs. Onlineformapro SA | Netmedia Group vs. Eutelsat Communications SA | Netmedia Group vs. Affluent Medical SAS | Netmedia Group vs. Mauna Kea Technologies |
| Mauna Kea vs. Netmedia Group SA | Mauna Kea vs. Seche Environnem | Mauna Kea vs. Invibes Advertising NV | Mauna Kea vs. DONTNOD Entertainment SA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |