Correlation Between Network Media and Tenet Fintech

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

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

Diversification Opportunities for Network Media and Tenet Fintech

0.26

Correlation Coefficient

Network Media  Tenet Fintech

Modest diversification

The 3 months correlation between Network and Tenet is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Network Media Group and Tenet Fintech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenet Fintech Group and Network 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 Network Media Group are associated (or correlated) with Tenet Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenet Fintech Group has no effect on the direction of Network Media i.e., Network Media and Tenet Fintech go up and down completely randomly.

Pair Corralation between Network Media and Tenet Fintech

Assuming the 90 days horizon Network Media is expected to generate 2.7 times less return on investment than Tenet Fintech. But when comparing it to its historical volatility, Network Media Group is 3.74 times less risky than Tenet Fintech. It trades about 0.23 of its potential returns per unit of risk. Tenet Fintech Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  1.80  in Tenet Fintech Group on May 4, 2025 and sell it today you would earn a total of  2.48  from holding Tenet Fintech Group or generate 137.78% return on investment over 90 days.

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

Network Media Group  vs.  Tenet Fintech Group

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.

Tenet Fintech Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tenet Fintech Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Tenet Fintech reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Network Media and Tenet Fintech

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

The idea behind Network Media Group and Tenet Fintech 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.