Correlation Between Tamul Multimedia and MediaZen

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

By analyzing existing cross correlation between Tamul Multimedia Co and MediaZen, you can compare the effects of market volatilities on Tamul Multimedia and MediaZen 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 Tamul Multimedia with a short position of MediaZen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tamul Multimedia and MediaZen.

Diversification Opportunities for Tamul Multimedia and MediaZen

0.0

Correlation Coefficient

Tamul Multimedia  MediaZen

Pay attention - limited upside

The 3 months correlation between Tamul and MediaZen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tamul Multimedia Co and MediaZen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaZen and Tamul Multimedia 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 Tamul Multimedia Co are associated (or correlated) with MediaZen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediaZen has no effect on the direction of Tamul Multimedia i.e., Tamul Multimedia and MediaZen go up and down completely randomly.

Pair Corralation between Tamul Multimedia and MediaZen

If you would invest  386,000  in Tamul Multimedia Co on October 24, 2024 and sell it today you would earn a total of  11,000  from holding Tamul Multimedia Co or generate 2.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Tamul Multimedia Co  vs.  MediaZen

Tamul Multimedia

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tamul Multimedia Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Tamul Multimedia is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

MediaZen

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Tamul Multimedia and MediaZen

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

The idea behind Tamul Multimedia Co and MediaZen 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.

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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.