Correlation Between Next Mediaworks and GPT Healthcare
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By analyzing existing cross correlation between Next Mediaworks Limited and GPT Healthcare, you can compare the effects of market volatilities on Next Mediaworks and GPT Healthcare 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 GPT Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Next Mediaworks and GPT Healthcare.
Diversification Opportunities for Next Mediaworks and GPT Healthcare
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Next and GPT is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Next Mediaworks Limited and GPT Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GPT Healthcare 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 GPT Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GPT Healthcare has no effect on the direction of Next Mediaworks i.e., Next Mediaworks and GPT Healthcare go up and down completely randomly.
Pair Corralation between Next Mediaworks and GPT Healthcare
Assuming the 90 days trading horizon Next Mediaworks Limited is expected to generate 4.44 times more return on investment than GPT Healthcare. However, Next Mediaworks is 4.44 times more volatile than GPT Healthcare. It trades about 0.2 of its potential returns per unit of risk. GPT Healthcare is currently generating about 0.13 per unit of risk. If you would invest 714.00 in Next Mediaworks Limited on September 3, 2024 and sell it today you would earn a total of 200.00 from holding Next Mediaworks Limited or generate 28.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Next Mediaworks Limited vs. GPT Healthcare
Performance |
| Timeline |
| Next Mediaworks |
| GPT Healthcare |
Next Mediaworks and GPT Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Next Mediaworks and GPT Healthcare
The main advantage of trading using opposite Next Mediaworks and GPT Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Next Mediaworks position performs unexpectedly, GPT Healthcare 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 GPT Healthcare will offset losses from the drop in GPT Healthcare'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 |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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