Correlation Between PGE Corp and Network18 Media

Can any of the company-specific risk be diversified away by investing in both PGE Corp and Network18 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 PGE Corp and Network18 Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PGE Corp and Network18 Media Investments, you can compare the effects of market volatilities on PGE Corp and Network18 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 PGE Corp with a short position of Network18 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGE Corp and Network18 Media.

Diversification Opportunities for PGE Corp and Network18 Media

0.0

Correlation Coefficient

PGE Corp  Network18 Media

Pay attention - limited upside

The 3 months correlation between PGE and Network18 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PGE Corp and Network18 Media Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Network18 Media Inve and PGE Corp 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 PGE Corp are associated (or correlated) with Network18 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Network18 Media Inve has no effect on the direction of PGE Corp i.e., PGE Corp and Network18 Media go up and down completely randomly.

Pair Corralation between PGE Corp and Network18 Media

If you would invest (100.00) in PGE Corp on July 11, 2025 and sell it today you would earn a total of  100.00  from holding PGE Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

PGE Corp  vs.  Network18 Media Investments

PGE Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days PGE Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, PGE Corp is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Network18 Media Inve

Risk-Adjusted Performance

Weakest

Over the last 90 days Network18 Media Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Network18 Media is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with PGE Corp and Network18 Media

The main advantage of trading using opposite PGE Corp and Network18 Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGE Corp position performs unexpectedly, Network18 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 Network18 Media will offset losses from the drop in Network18 Media's long position.

The idea behind PGE Corp and Network18 Media Investments 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.