Correlation Between Next Mediaworks and Indian Hotels
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By analyzing existing cross correlation between Next Mediaworks Limited and The Indian Hotels, you can compare the effects of market volatilities on Next Mediaworks and Indian Hotels 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 Indian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Next Mediaworks and Indian Hotels.
Diversification Opportunities for Next Mediaworks and Indian Hotels
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Next and Indian is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Next Mediaworks Limited and The Indian Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Hotels 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 Indian Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Hotels has no effect on the direction of Next Mediaworks i.e., Next Mediaworks and Indian Hotels go up and down completely randomly.
Pair Corralation between Next Mediaworks and Indian Hotels
Assuming the 90 days trading horizon Next Mediaworks Limited is expected to under-perform the Indian Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Next Mediaworks Limited is 1.37 times less risky than Indian Hotels. The stock trades about -0.65 of its potential returns per unit of risk. The The Indian Hotels is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 83,640 in The Indian Hotels on October 12, 2024 and sell it today you would lose (1,355) from holding The Indian Hotels or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Next Mediaworks Limited vs. The Indian Hotels
Performance |
| Timeline |
| Next Mediaworks |
| Indian Hotels |
Next Mediaworks and Indian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Next Mediaworks and Indian Hotels
The main advantage of trading using opposite Next Mediaworks and Indian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Next Mediaworks position performs unexpectedly, Indian Hotels 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 Indian Hotels will offset losses from the drop in Indian Hotels' long position.| Next Mediaworks vs. Dodla Dairy Limited | Next Mediaworks vs. POWERGRID Infrastructure Investment | Next Mediaworks vs. Tube Investments of | Next Mediaworks vs. Vinati Organics Limited |
| Indian Hotels vs. Foods Inns Limited | Indian Hotels vs. Shyam Metalics and | Indian Hotels vs. UFO Moviez India | Indian Hotels vs. Ankit Metal Power |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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