Correlation Between FansUnite Entertainment and Network Media

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

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

Diversification Opportunities for FansUnite Entertainment and Network Media

-0.07

Correlation Coefficient

FansUnite Entertainment  Network Media

Good diversification

The 3 months correlation between FansUnite and Network is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding FansUnite Entertainment 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 FansUnite Entertainment 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 FansUnite Entertainment 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 FansUnite Entertainment i.e., FansUnite Entertainment and Network Media go up and down completely randomly.

Pair Corralation between FansUnite Entertainment and Network Media

Assuming the 90 days horizon FansUnite Entertainment is expected to generate 65.65 times more return on investment than Network Media. However, FansUnite Entertainment is 65.65 times more volatile than Network Media Group. It trades about 0.3 of its potential returns per unit of risk. Network Media Group is currently generating about 0.05 per unit of risk. If you would invest  0.05  in FansUnite Entertainment on June 30, 2025 and sell it today you would lose (0.02) from holding FansUnite Entertainment or give up 40.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

FansUnite Entertainment  vs.  Network Media Group

FansUnite Entertainment

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in FansUnite Entertainment are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, FansUnite Entertainment reported solid returns over the last few months and may actually be approaching a breakup point.

Network Media Group

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Network Media Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Network Media may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with FansUnite Entertainment and Network Media

The main advantage of trading using opposite FansUnite Entertainment and Network Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FansUnite Entertainment 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 FansUnite Entertainment 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.