Correlation Between 360 ONE and HT Media

Can any of the company-specific risk be diversified away by investing in both 360 ONE and HT Media at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining 360 ONE and HT Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 360 ONE WAM and HT Media Limited, you can compare the effects of market volatilities on 360 ONE and HT Media 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 360 ONE with a short position of HT Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 ONE and HT Media.

Diversification Opportunities for 360 ONE and HT Media

0.12

Correlation Coefficient

360 ONE  HT Media

Average diversification

The 3 months correlation between 360 and HTMEDIA is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding 360 ONE WAM and HT Media Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HT Media Limited and 360 ONE 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 360 ONE WAM are associated (or correlated) with HT Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HT Media Limited has no effect on the direction of 360 ONE i.e., 360 ONE and HT Media go up and down completely randomly.

Pair Corralation between 360 ONE and HT Media

Assuming the 90 days trading horizon 360 ONE WAM is expected to generate 0.99 times more return on investment than HT Media. However, 360 ONE WAM is 1.01 times less risky than HT Media. It trades about 0.06 of its potential returns per unit of risk. HT Media Limited is currently generating about 0.0 per unit of risk. If you would invest  110,425  in 360 ONE WAM on September 15, 2024 and sell it today you would earn a total of  8,235  from holding 360 ONE WAM or generate 7.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

360 ONE WAM  vs.  HT Media Limited

360 ONE WAM

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in 360 ONE WAM are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, 360 ONE may actually be approaching a critical reversion point that can send shares even higher in January 2025.

HT Media Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HT Media Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, HT Media is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with 360 ONE and HT Media

The main advantage of trading using opposite 360 ONE and HT Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 ONE position performs unexpectedly, HT Media 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 HT Media will offset losses from the drop in HT Media's long position.

The idea behind 360 ONE WAM and HT Media Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..