Correlation Between Victory Square and Network Media

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

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

Diversification Opportunities for Victory Square and Network Media

-0.21

Correlation Coefficient

Victory Square  Network Media

Very good diversification

The 3 months correlation between Victory and Network is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Victory Square Technologies 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 Victory Square 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 Victory Square Technologies 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 Victory Square i.e., Victory Square and Network Media go up and down completely randomly.

Pair Corralation between Victory Square and Network Media

Assuming the 90 days horizon Victory Square Technologies is expected to generate 1.22 times more return on investment than Network Media. However, Victory Square is 1.22 times more volatile than Network Media Group. It trades about 0.21 of its potential returns per unit of risk. Network Media Group is currently generating about 0.11 per unit of risk. If you would invest  12.00  in Victory Square Technologies on July 1, 2025 and sell it today you would earn a total of  48.00  from holding Victory Square Technologies or generate 400.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.43%
Values	Daily Returns

Victory Square Technologies  vs.  Network Media Group

Victory Square Techn

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Victory Square Technologies are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Victory Square 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 Victory Square and Network Media

The main advantage of trading using opposite Victory Square and Network Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Square 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 Victory Square Technologies 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.

Check out your portfolio center.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.