Correlation Between Banka BioLoo and DJ Mediaprint

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

By analyzing existing cross correlation between Banka BioLoo Limited and DJ Mediaprint Logistics, you can compare the effects of market volatilities on Banka BioLoo and DJ Mediaprint 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 Banka BioLoo with a short position of DJ Mediaprint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banka BioLoo and DJ Mediaprint.

Diversification Opportunities for Banka BioLoo and DJ Mediaprint

-0.66

Correlation Coefficient

Banka BioLoo  DJ Mediaprint

Excellent diversification

The 3 months correlation between Banka and DJML is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Banka BioLoo Limited and DJ Mediaprint Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DJ Mediaprint Logistics and Banka BioLoo 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 Banka BioLoo Limited are associated (or correlated) with DJ Mediaprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DJ Mediaprint Logistics has no effect on the direction of Banka BioLoo i.e., Banka BioLoo and DJ Mediaprint go up and down completely randomly.

Pair Corralation between Banka BioLoo and DJ Mediaprint

Assuming the 90 days trading horizon Banka BioLoo is expected to generate 20.62 times less return on investment than DJ Mediaprint. But when comparing it to its historical volatility, Banka BioLoo Limited is 7.08 times less risky than DJ Mediaprint. It trades about 0.03 of its potential returns per unit of risk. DJ Mediaprint Logistics is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  5,189  in DJ Mediaprint Logistics on October 4, 2024 and sell it today you would earn a total of  12,105  from holding DJ Mediaprint Logistics or generate 233.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Banka BioLoo Limited  vs.  DJ Mediaprint Logistics

Banka BioLoo Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Banka BioLoo Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

DJ Mediaprint Logistics

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in DJ Mediaprint Logistics are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, DJ Mediaprint unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Banka BioLoo and DJ Mediaprint

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

The idea behind Banka BioLoo Limited and DJ Mediaprint Logistics 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.