Correlation Between Next Mediaworks and Embassy Office
Specify exactly 2 symbols:
By analyzing existing cross correlation between Next Mediaworks Limited and Embassy Office Parks, you can compare the effects of market volatilities on Next Mediaworks and Embassy Office 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 Embassy Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Next Mediaworks and Embassy Office.
Diversification Opportunities for Next Mediaworks and Embassy Office
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Next and Embassy is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Next Mediaworks Limited and Embassy Office Parks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embassy Office Parks 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 Embassy Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embassy Office Parks has no effect on the direction of Next Mediaworks i.e., Next Mediaworks and Embassy Office go up and down completely randomly.
Pair Corralation between Next Mediaworks and Embassy Office
Assuming the 90 days trading horizon Next Mediaworks Limited is expected to under-perform the Embassy Office. In addition to that, Next Mediaworks is 1.55 times more volatile than Embassy Office Parks. It trades about -0.27 of its total potential returns per unit of risk. Embassy Office Parks is currently generating about -0.04 per unit of volatility. If you would invest 37,600 in Embassy Office Parks on October 30, 2024 and sell it today you would lose (1,074) from holding Embassy Office Parks or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Next Mediaworks Limited vs. Embassy Office Parks
Performance |
| Timeline |
| Next Mediaworks |
| Embassy Office Parks |
Next Mediaworks and Embassy Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Next Mediaworks and Embassy Office
The main advantage of trading using opposite Next Mediaworks and Embassy Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Next Mediaworks position performs unexpectedly, Embassy Office 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 Embassy Office will offset losses from the drop in Embassy Office's long position.| Next Mediaworks vs. ILFS Investment Managers | Next Mediaworks vs. POWERGRID Infrastructure Investment | Next Mediaworks vs. Cholamandalam Investment and | Next Mediaworks vs. Network18 Media Investments |
| Embassy Office vs. Hisar Metal Industries | Embassy Office vs. Shyam Metalics and | Embassy Office vs. Hilton Metal Forging | Embassy Office vs. Life Insurance |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |