Correlation Between Brigadier Gold and Network Media

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

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

Diversification Opportunities for Brigadier Gold and Network Media

0.0

Correlation Coefficient

Brigadier Gold  Network Media

Pay attention - limited upside

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

Pair Corralation between Brigadier Gold and Network Media

If you would invest  5.60  in Network Media Group on May 3, 2025 and sell it today you would earn a total of  6.40  from holding Network Media Group or generate 114.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Brigadier Gold Limited  vs.  Network Media Group

Brigadier Gold

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brigadier Gold Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Brigadier Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Network Media Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Network Media Group are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Network Media reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Brigadier Gold and Network Media

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

The idea behind Brigadier Gold Limited and Network Media Group 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.