Correlation Between Spencers Retail and Next Mediaworks
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By analyzing existing cross correlation between Spencers Retail Limited and Next Mediaworks Limited, you can compare the effects of market volatilities on Spencers Retail 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 Spencers Retail with a short position of Next Mediaworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spencers Retail and Next Mediaworks.
Diversification Opportunities for Spencers Retail and Next Mediaworks
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spencers and Next is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Spencers Retail Limited and Next Mediaworks Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Next Mediaworks and Spencers Retail 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 Spencers Retail Limited 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 Spencers Retail i.e., Spencers Retail and Next Mediaworks go up and down completely randomly.
Pair Corralation between Spencers Retail and Next Mediaworks
Assuming the 90 days trading horizon Spencers Retail Limited is expected to under-perform the Next Mediaworks. But the stock apears to be less risky and, when comparing its historical volatility, Spencers Retail Limited is 3.42 times less risky than Next Mediaworks. The stock trades about -0.08 of its potential returns per unit of risk. The Next Mediaworks Limited is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 714.00 in Next Mediaworks Limited on September 5, 2024 and sell it today you would earn a total of 288.00 from holding Next Mediaworks Limited or generate 40.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spencers Retail Limited vs. Next Mediaworks Limited
Performance |
| Timeline |
| Spencers Retail |
| Next Mediaworks |
Spencers Retail and Next Mediaworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spencers Retail and Next Mediaworks
The main advantage of trading using opposite Spencers Retail and Next Mediaworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spencers Retail 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.| Spencers Retail vs. Next Mediaworks Limited | Spencers Retail vs. Radiant Cash Management | Spencers Retail vs. Hexa Tradex Limited | Spencers Retail vs. Cantabil Retail India |
| Next Mediaworks vs. Reliance Industries Limited | Next Mediaworks vs. Oil Natural Gas | Next Mediaworks vs. Power Finance | Next Mediaworks vs. Indian Oil |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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