Correlation Between Next Mediaworks and Electronics Mart
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By analyzing existing cross correlation between Next Mediaworks Limited and Electronics Mart India, you can compare the effects of market volatilities on Next Mediaworks and Electronics Mart 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 Electronics Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Next Mediaworks and Electronics Mart.
Diversification Opportunities for Next Mediaworks and Electronics Mart
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Next and Electronics is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Next Mediaworks Limited and Electronics Mart India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronics Mart India 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 Electronics Mart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronics Mart India has no effect on the direction of Next Mediaworks i.e., Next Mediaworks and Electronics Mart go up and down completely randomly.
Pair Corralation between Next Mediaworks and Electronics Mart
Assuming the 90 days trading horizon Next Mediaworks Limited is expected to generate 1.81 times more return on investment than Electronics Mart. However, Next Mediaworks is 1.81 times more volatile than Electronics Mart India. It trades about 0.3 of its potential returns per unit of risk. Electronics Mart India is currently generating about -0.1 per unit of risk. If you would invest 701.00 in Next Mediaworks Limited on August 29, 2024 and sell it today you would earn a total of 345.00 from holding Next Mediaworks Limited or generate 49.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Next Mediaworks Limited vs. Electronics Mart India
Performance |
| Timeline |
| Next Mediaworks |
| Electronics Mart India |
Next Mediaworks and Electronics Mart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Next Mediaworks and Electronics Mart
The main advantage of trading using opposite Next Mediaworks and Electronics Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Next Mediaworks position performs unexpectedly, Electronics Mart 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 Electronics Mart will offset losses from the drop in Electronics Mart's long position.| Next Mediaworks vs. Taj GVK Hotels | Next Mediaworks vs. Kamat Hotels Limited | Next Mediaworks vs. Sarthak Metals Limited | Next Mediaworks vs. Associated Alcohols Breweries |
| Electronics Mart vs. Pilani Investment and | Electronics Mart vs. Baazar Style Retail | Electronics Mart vs. Kalyani Investment | Electronics Mart vs. Tata Investment |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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