Correlation Between Xchanging Solutions and Next Mediaworks
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By analyzing existing cross correlation between Xchanging Solutions Limited and Next Mediaworks Limited, you can compare the effects of market volatilities on Xchanging Solutions 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 Xchanging Solutions with a short position of Next Mediaworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xchanging Solutions and Next Mediaworks.
Diversification Opportunities for Xchanging Solutions and Next Mediaworks
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xchanging and Next is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Xchanging Solutions 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 Xchanging Solutions 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 Xchanging Solutions 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 Xchanging Solutions i.e., Xchanging Solutions and Next Mediaworks go up and down completely randomly.
Pair Corralation between Xchanging Solutions and Next Mediaworks
Assuming the 90 days trading horizon Xchanging Solutions is expected to generate 18.13 times less return on investment than Next Mediaworks. But when comparing it to its historical volatility, Xchanging Solutions Limited is 6.57 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 0.22 of returns per unit of risk over similar time horizon. If you would invest 686.00 in Next Mediaworks Limited on September 2, 2024 and sell it today you would earn a total of 228.00 from holding Next Mediaworks Limited or generate 33.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xchanging Solutions Limited vs. Next Mediaworks Limited
Performance |
| Timeline |
| Xchanging Solutions |
| Next Mediaworks |
Xchanging Solutions and Next Mediaworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xchanging Solutions and Next Mediaworks
The main advantage of trading using opposite Xchanging Solutions and Next Mediaworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xchanging Solutions 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.| Xchanging Solutions vs. Elin Electronics Limited | Xchanging Solutions vs. R S Software | Xchanging Solutions vs. V2 Retail Limited | Xchanging Solutions vs. Praxis Home Retail |
| Next Mediaworks vs. Xchanging Solutions Limited | Next Mediaworks vs. Kingfa Science Technology | Next Mediaworks vs. Rico Auto Industries | Next Mediaworks vs. GACM Technologies 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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