Correlation Between Network18 Media and Agro Tech
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By analyzing existing cross correlation between Network18 Media Investments and Agro Tech Foods, you can compare the effects of market volatilities on Network18 Media and Agro Tech 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 Network18 Media with a short position of Agro Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Network18 Media and Agro Tech.
Diversification Opportunities for Network18 Media and Agro Tech
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Network18 and Agro is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Network18 Media Investments and Agro Tech Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agro Tech Foods and Network18 Media 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 Network18 Media Investments are associated (or correlated) with Agro Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agro Tech Foods has no effect on the direction of Network18 Media i.e., Network18 Media and Agro Tech go up and down completely randomly.
Pair Corralation between Network18 Media and Agro Tech
Assuming the 90 days trading horizon Network18 Media Investments is expected to under-perform the Agro Tech. But the stock apears to be less risky and, when comparing its historical volatility, Network18 Media Investments is 1.06 times less risky than Agro Tech. The stock trades about -0.08 of its potential returns per unit of risk. The Agro Tech Foods is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 83,480 in Agro Tech Foods on September 2, 2024 and sell it today you would earn a total of 10,335 from holding Agro Tech Foods or generate 12.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Network18 Media Investments vs. Agro Tech Foods
Performance |
| Timeline |
| Network18 Media Inve |
| Agro Tech Foods |
Network18 Media and Agro Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Network18 Media and Agro Tech
The main advantage of trading using opposite Network18 Media and Agro Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Network18 Media position performs unexpectedly, Agro Tech 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 Agro Tech will offset losses from the drop in Agro Tech's long position.| Network18 Media vs. Xchanging Solutions Limited | Network18 Media vs. Kingfa Science Technology | Network18 Media vs. Rico Auto Industries | Network18 Media vs. GACM Technologies Limited |
| Agro Tech vs. Steelcast Limited | Agro Tech vs. NMDC Steel Limited | Agro Tech vs. HDFC Life Insurance | Agro Tech vs. MSP Steel Power |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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