Correlation Between Osia Hyper and Next Mediaworks

Can any of the company-specific risk be diversified away by investing in both Osia Hyper and Next Mediaworks 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 Osia Hyper and Next Mediaworks into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Osia Hyper Retail and Next Mediaworks Limited, you can compare the effects of market volatilities on Osia Hyper 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 Osia Hyper with a short position of Next Mediaworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osia Hyper and Next Mediaworks.

Diversification Opportunities for Osia Hyper and Next Mediaworks

-0.26

Correlation Coefficient

Osia Hyper  Next Mediaworks

Very good diversification

The 3 months correlation between Osia and Next is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Osia Hyper Retail and Next Mediaworks Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Next Mediaworks and Osia Hyper 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 Osia Hyper Retail 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 Osia Hyper i.e., Osia Hyper and Next Mediaworks go up and down completely randomly.

Pair Corralation between Osia Hyper and Next Mediaworks

Assuming the 90 days trading horizon Osia Hyper Retail is expected to under-perform the Next Mediaworks. In addition to that, Osia Hyper is 1.49 times more volatile than Next Mediaworks Limited. It trades about -0.32 of its total potential returns per unit of risk. Next Mediaworks Limited is currently generating about 0.1 per unit of volatility. If you would invest  631.00  in Next Mediaworks Limited on March 30, 2025 and sell it today you would earn a total of  66.00  from holding Next Mediaworks Limited or generate 10.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Osia Hyper Retail  vs.  Next Mediaworks Limited

Osia Hyper Retail

Risk-Adjusted Performance

Very Weak

Over the last 90 days Osia Hyper Retail has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in July 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Next Mediaworks

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Next Mediaworks Limited are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Next Mediaworks may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Osia Hyper and Next Mediaworks

The main advantage of trading using opposite Osia Hyper and Next Mediaworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osia Hyper 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.

The idea behind Osia Hyper Retail and Next Mediaworks 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.