Correlation Between Shipping and Next Mediaworks
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By analyzing existing cross correlation between Shipping and Next Mediaworks Limited, you can compare the effects of market volatilities on Shipping and Next Mediaworks 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 Shipping with a short position of Next Mediaworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shipping and Next Mediaworks.
Diversification Opportunities for Shipping and Next Mediaworks
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shipping and Next is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Shipping and Next Mediaworks Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Next Mediaworks and Shipping 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 Shipping are associated (or correlated) with Next Mediaworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Next Mediaworks has no effect on the direction of Shipping i.e., Shipping and Next Mediaworks go up and down completely randomly.
Pair Corralation between Shipping and Next Mediaworks
Assuming the 90 days trading horizon Shipping is expected to generate 0.94 times more return on investment than Next Mediaworks. However, Shipping is 1.06 times less risky than Next Mediaworks. It trades about 0.08 of its potential returns per unit of risk. Next Mediaworks Limited is currently generating about 0.05 per unit of risk. If you would invest 13,140 in Shipping on September 4, 2024 and sell it today you would earn a total of 10,288 from holding Shipping or generate 78.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.24% |
| Values | Daily Returns |
Shipping vs. Next Mediaworks Limited
Performance |
| Timeline |
| Shipping |
| Next Mediaworks |
Shipping and Next Mediaworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shipping and Next Mediaworks
The main advantage of trading using opposite Shipping and Next Mediaworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shipping position performs unexpectedly, Next Mediaworks 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 Next Mediaworks will offset losses from the drop in Next Mediaworks' long position.| Shipping vs. Ortel Communications Limited | Shipping vs. Agro Tech Foods | Shipping vs. Tamilnadu Telecommunication Limited | Shipping vs. Megastar Foods Limited |
| Next Mediaworks vs. S P Apparels | Next Mediaworks vs. Zodiac Clothing | Next Mediaworks vs. Indian Metals Ferro | Next Mediaworks vs. EMBASSY OFFICE PARKS |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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