Correlation Between HMT and Next Mediaworks
Specify exactly 2 symbols:
By analyzing existing cross correlation between HMT Limited and Next Mediaworks Limited, you can compare the effects of market volatilities on HMT 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 HMT with a short position of Next Mediaworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of HMT and Next Mediaworks.
Diversification Opportunities for HMT and Next Mediaworks
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HMT and Next is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding HMT Limited and Next Mediaworks Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Next Mediaworks and HMT 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 HMT Limited 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 HMT i.e., HMT and Next Mediaworks go up and down completely randomly.
Pair Corralation between HMT and Next Mediaworks
Assuming the 90 days trading horizon HMT Limited is expected to under-perform the Next Mediaworks. But the stock apears to be less risky and, when comparing its historical volatility, HMT Limited is 3.65 times less risky than Next Mediaworks. The stock trades about -0.29 of its potential returns per unit of risk. The Next Mediaworks Limited is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 686.00 in Next Mediaworks Limited on September 2, 2024 and sell it today you would earn a total of 228.00 from holding Next Mediaworks Limited or generate 33.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HMT Limited vs. Next Mediaworks Limited
Performance |
| Timeline |
| HMT Limited |
| Next Mediaworks |
HMT and Next Mediaworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HMT and Next Mediaworks
The main advantage of trading using opposite HMT and Next Mediaworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HMT 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.| HMT vs. Shyam Telecom Limited | HMT vs. Kavveri Telecom Products | HMT vs. Hilton Metal Forging | HMT vs. Tata Communications Limited |
| Next Mediaworks vs. Xchanging Solutions Limited | Next Mediaworks vs. Kingfa Science Technology | Next Mediaworks vs. Rico Auto Industries | Next Mediaworks vs. GACM Technologies Limited |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |