Correlation Between Sportsmans and Network Media

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

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

Diversification Opportunities for Sportsmans and Network Media

0.59

Correlation Coefficient

Sportsmans  Network Media

Very weak diversification

The 3 months correlation between Sportsmans and Network is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sportsmans 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 Sportsmans 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 Sportsmans 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 Sportsmans i.e., Sportsmans and Network Media go up and down completely randomly.

Pair Corralation between Sportsmans and Network Media

Given the investment horizon of 90 days Sportsmans is expected to under-perform the Network Media. In addition to that, Sportsmans is 1.75 times more volatile than Network Media Group. It trades about -0.05 of its total potential returns per unit of risk. Network Media Group is currently generating about -0.07 per unit of volatility. If you would invest  10.00  in Network Media Group on August 29, 2025 and sell it today you would lose (1.47) from holding Network Media Group or give up 14.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Sportsmans  vs.  Network Media Group

Sportsmans

Risk-Adjusted Performance

Weakest

Over the last 90 days Sportsmans has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Network Media Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Network Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Sportsmans and Network Media

The main advantage of trading using opposite Sportsmans and Network Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sportsmans 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 Sportsmans 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.