Correlation Between Next Mediaworks and Selan Exploration
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By analyzing existing cross correlation between Next Mediaworks Limited and Selan Exploration Technology, you can compare the effects of market volatilities on Next Mediaworks and Selan Exploration 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 Selan Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Next Mediaworks and Selan Exploration.
Diversification Opportunities for Next Mediaworks and Selan Exploration
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Next and Selan is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Next Mediaworks Limited and Selan Exploration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selan Exploration 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 Selan Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selan Exploration has no effect on the direction of Next Mediaworks i.e., Next Mediaworks and Selan Exploration go up and down completely randomly.
Pair Corralation between Next Mediaworks and Selan Exploration
Assuming the 90 days trading horizon Next Mediaworks Limited is expected to under-perform the Selan Exploration. But the stock apears to be less risky and, when comparing its historical volatility, Next Mediaworks Limited is 2.18 times less risky than Selan Exploration. The stock trades about -0.73 of its potential returns per unit of risk. The Selan Exploration Technology is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 91,155 in Selan Exploration Technology on October 11, 2024 and sell it today you would lose (10,035) from holding Selan Exploration Technology or give up 11.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Next Mediaworks Limited vs. Selan Exploration Technology
Performance |
| Timeline |
| Next Mediaworks |
| Selan Exploration |
Next Mediaworks and Selan Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Next Mediaworks and Selan Exploration
The main advantage of trading using opposite Next Mediaworks and Selan Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Next Mediaworks position performs unexpectedly, Selan Exploration 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 Selan Exploration will offset losses from the drop in Selan Exploration's long position.| Next Mediaworks vs. Krebs Biochemicals and | Next Mediaworks vs. TECIL Chemicals and | Next Mediaworks vs. JGCHEMICALS LIMITED | Next Mediaworks vs. Omkar Speciality Chemicals |
| Selan Exploration vs. Diligent Media | Selan Exploration vs. Kohinoor Foods Limited | Selan Exploration vs. Next Mediaworks Limited | Selan Exploration vs. Imagicaaworld Entertainment 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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