Correlation Between Bodhi Tree and Next Mediaworks
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bodhi Tree Multimedia and Next Mediaworks Limited, you can compare the effects of market volatilities on Bodhi Tree and Next Mediaworks 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 Bodhi Tree with a short position of Next Mediaworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bodhi Tree and Next Mediaworks.
Diversification Opportunities for Bodhi Tree and Next Mediaworks
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bodhi and Next is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bodhi Tree Multimedia and Next Mediaworks Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Next Mediaworks and Bodhi Tree 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 Bodhi Tree Multimedia are associated (or correlated) with Next Mediaworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Next Mediaworks has no effect on the direction of Bodhi Tree i.e., Bodhi Tree and Next Mediaworks go up and down completely randomly.
Pair Corralation between Bodhi Tree and Next Mediaworks
Assuming the 90 days trading horizon Bodhi Tree Multimedia is expected to under-perform the Next Mediaworks. In addition to that, Bodhi Tree is 1.29 times more volatile than Next Mediaworks Limited. It trades about -0.15 of its total potential returns per unit of risk. Next Mediaworks Limited is currently generating about -0.18 per unit of volatility. If you would invest 704.00 in Next Mediaworks Limited on December 1, 2024 and sell it today you would lose (76.00) from holding Next Mediaworks Limited or give up 10.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bodhi Tree Multimedia vs. Next Mediaworks Limited
Performance |
| Timeline |
| Bodhi Tree Multimedia |
| Next Mediaworks |
Bodhi Tree and Next Mediaworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bodhi Tree and Next Mediaworks
The main advantage of trading using opposite Bodhi Tree and Next Mediaworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bodhi Tree position performs unexpectedly, Next Mediaworks 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 Next Mediaworks will offset losses from the drop in Next Mediaworks' long position.| Bodhi Tree vs. Sarthak Metals Limited | Bodhi Tree vs. Manaksia Coated Metals | Bodhi Tree vs. Associated Alcohols Breweries | Bodhi Tree vs. Industrial Investment Trust |
| Next Mediaworks vs. PYRAMID TECHNOPLAST ORD | Next Mediaworks vs. Radaan Mediaworks India | Next Mediaworks vs. FCS Software Solutions | Next Mediaworks vs. LT Technology Services |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |