Correlation Between Network18 Media and Silly Monks

Can any of the company-specific risk be diversified away by investing in both Network18 Media and Silly Monks 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 Network18 Media and Silly Monks into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Network18 Media Investments and Silly Monks Entertainment, you can compare the effects of market volatilities on Network18 Media and Silly Monks 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 Network18 Media with a short position of Silly Monks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Network18 Media and Silly Monks.

Diversification Opportunities for Network18 Media and Silly Monks

0.06

Correlation Coefficient

Network18 Media  Silly Monks

Significant diversification

The 3 months correlation between Network18 and Silly is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Network18 Media Investments and Silly Monks Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silly Monks Entertainment and Network18 Media 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 Network18 Media Investments are associated (or correlated) with Silly Monks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silly Monks Entertainment has no effect on the direction of Network18 Media i.e., Network18 Media and Silly Monks go up and down completely randomly.

Pair Corralation between Network18 Media and Silly Monks

Assuming the 90 days trading horizon Network18 Media Investments is expected to generate 0.92 times more return on investment than Silly Monks. However, Network18 Media Investments is 1.08 times less risky than Silly Monks. It trades about 0.17 of its potential returns per unit of risk. Silly Monks Entertainment is currently generating about 0.09 per unit of risk. If you would invest  4,369  in Network18 Media Investments on April 25, 2025 and sell it today you would earn a total of  1,641  from holding Network18 Media Investments or generate 37.56% return on investment over 90 days.

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

Network18 Media Investments  vs.  Silly Monks Entertainment

Network18 Media Inve

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Network18 Media Investments are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent forward-looking signals, Network18 Media disclosed solid returns over the last few months and may actually be approaching a breakup point.

Silly Monks Entertainment

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Silly Monks Entertainment are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Silly Monks displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Network18 Media and Silly Monks

The main advantage of trading using opposite Network18 Media and Silly Monks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Network18 Media position performs unexpectedly, Silly Monks 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 Silly Monks will offset losses from the drop in Silly Monks' long position.

The idea behind Network18 Media Investments and Silly Monks Entertainment 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.