Correlation Between Next Mediaworks and Bodhi Tree
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By analyzing existing cross correlation between Next Mediaworks Limited and Bodhi Tree Multimedia, you can compare the effects of market volatilities on Next Mediaworks and Bodhi Tree 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 Next Mediaworks with a short position of Bodhi Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Next Mediaworks and Bodhi Tree.
Diversification Opportunities for Next Mediaworks and Bodhi Tree
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Next and Bodhi is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Next Mediaworks Limited and Bodhi Tree Multimedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bodhi Tree Multimedia and Next Mediaworks 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 Next Mediaworks Limited are associated (or correlated) with Bodhi Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bodhi Tree Multimedia has no effect on the direction of Next Mediaworks i.e., Next Mediaworks and Bodhi Tree go up and down completely randomly.
Pair Corralation between Next Mediaworks and Bodhi Tree
Assuming the 90 days trading horizon Next Mediaworks Limited is expected to generate 1.17 times more return on investment than Bodhi Tree. However, Next Mediaworks is 1.17 times more volatile than Bodhi Tree Multimedia. It trades about 0.05 of its potential returns per unit of risk. Bodhi Tree Multimedia is currently generating about -0.05 per unit of risk. If you would invest 740.00 in Next Mediaworks Limited on September 3, 2024 and sell it today you would earn a total of 174.00 from holding Next Mediaworks Limited or generate 23.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Next Mediaworks Limited vs. Bodhi Tree Multimedia
Performance |
| Timeline |
| Next Mediaworks |
| Bodhi Tree Multimedia |
Next Mediaworks and Bodhi Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Next Mediaworks and Bodhi Tree
The main advantage of trading using opposite Next Mediaworks and Bodhi Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Next Mediaworks position performs unexpectedly, Bodhi Tree 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 Bodhi Tree will offset losses from the drop in Bodhi Tree's long position.| Next Mediaworks vs. Shipping | Next Mediaworks vs. Indo Borax Chemicals | Next Mediaworks vs. Kingfa Science Technology | Next Mediaworks vs. Alkali Metals Limited |
| Bodhi Tree vs. Shipping | Bodhi Tree vs. Indo Borax Chemicals | Bodhi Tree vs. Kingfa Science Technology | Bodhi Tree vs. Alkali Metals 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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