Correlation Between Next Mediaworks and HMT
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By analyzing existing cross correlation between Next Mediaworks Limited and HMT Limited, you can compare the effects of market volatilities on Next Mediaworks and HMT 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 HMT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Next Mediaworks and HMT.
Diversification Opportunities for Next Mediaworks and HMT
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Next and HMT is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Next Mediaworks Limited and HMT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMT Limited 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 HMT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMT Limited has no effect on the direction of Next Mediaworks i.e., Next Mediaworks and HMT go up and down completely randomly.
Pair Corralation between Next Mediaworks and HMT
Assuming the 90 days trading horizon Next Mediaworks Limited is expected to generate 3.22 times more return on investment than HMT. However, Next Mediaworks is 3.22 times more volatile than HMT Limited. It trades about 0.25 of its potential returns per unit of risk. HMT Limited is currently generating about -0.1 per unit of risk. If you would invest 684.00 in Next Mediaworks Limited on August 30, 2024 and sell it today you would earn a total of 280.00 from holding Next Mediaworks Limited or generate 40.94% 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. HMT Limited
Performance |
| Timeline |
| Next Mediaworks |
| HMT Limited |
Next Mediaworks and HMT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Next Mediaworks and HMT
The main advantage of trading using opposite Next Mediaworks and HMT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Next Mediaworks position performs unexpectedly, HMT 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 HMT will offset losses from the drop in HMT's long position.| Next Mediaworks vs. Xchanging Solutions Limited | Next Mediaworks vs. Kingfa Science Technology | Next Mediaworks vs. Rico Auto Industries | Next Mediaworks vs. GACM Technologies Limited |
| HMT vs. Next Mediaworks Limited | HMT vs. Cyber Media Research | HMT vs. Hindustan Foods Limited | HMT vs. Varun Beverages 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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