Correlation Between ABSA NEW and NATION MEDIA
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By analyzing existing cross correlation between ABSA NEW GOLD and NATION MEDIA GROUP, you can compare the effects of market volatilities on ABSA NEW and NATION MEDIA 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 ABSA NEW with a short position of NATION MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABSA NEW and NATION MEDIA.
Diversification Opportunities for ABSA NEW and NATION MEDIA
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ABSA and NATION is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ABSA NEW GOLD and NATION MEDIA GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATION MEDIA GROUP and ABSA NEW 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 ABSA NEW GOLD are associated (or correlated) with NATION MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATION MEDIA GROUP has no effect on the direction of ABSA NEW i.e., ABSA NEW and NATION MEDIA go up and down completely randomly.
Pair Corralation between ABSA NEW and NATION MEDIA
Assuming the 90 days trading horizon ABSA NEW GOLD is expected to generate 0.21 times more return on investment than NATION MEDIA. However, ABSA NEW GOLD is 4.74 times less risky than NATION MEDIA. It trades about 0.11 of its potential returns per unit of risk. NATION MEDIA GROUP is currently generating about -0.1 per unit of risk. If you would invest 292,000 in ABSA NEW GOLD on September 3, 2024 and sell it today you would earn a total of 30,000 from holding ABSA NEW GOLD or generate 10.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABSA NEW GOLD vs. NATION MEDIA GROUP
Performance |
| Timeline |
| ABSA NEW GOLD |
| NATION MEDIA GROUP |
ABSA NEW and NATION MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABSA NEW and NATION MEDIA
The main advantage of trading using opposite ABSA NEW and NATION MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABSA NEW position performs unexpectedly, NATION MEDIA 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 NATION MEDIA will offset losses from the drop in NATION MEDIA's long position.The idea behind ABSA NEW GOLD and NATION MEDIA GROUP 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.| NATION MEDIA vs. CENTUM INVESTMENT PANY | NATION MEDIA vs. ABSA BANK OF | NATION MEDIA vs. HOME AFRIKA LTD | NATION MEDIA vs. HOMEBOYZ ENTERTAINMENT PLC |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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