Correlation Between DJ Mediaprint and Ashapura Minechem

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

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

Diversification Opportunities for DJ Mediaprint and Ashapura Minechem

0.9

Correlation Coefficient

DJ Mediaprint  Ashapura Minechem

Almost no diversification

The 3 months correlation between DJML and Ashapura is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding DJ Mediaprint Logistics and Ashapura Minechem Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashapura Minechem and DJ Mediaprint 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 DJ Mediaprint Logistics are associated (or correlated) with Ashapura Minechem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashapura Minechem has no effect on the direction of DJ Mediaprint i.e., DJ Mediaprint and Ashapura Minechem go up and down completely randomly.

Pair Corralation between DJ Mediaprint and Ashapura Minechem

Assuming the 90 days trading horizon DJ Mediaprint Logistics is expected to under-perform the Ashapura Minechem. But the stock apears to be less risky and, when comparing its historical volatility, DJ Mediaprint Logistics is 1.34 times less risky than Ashapura Minechem. The stock trades about -0.05 of its potential returns per unit of risk. The Ashapura Minechem Limited is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  42,235  in Ashapura Minechem Limited on October 11, 2024 and sell it today you would earn a total of  6,230  from holding Ashapura Minechem Limited or generate 14.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	95.24%
Values	Daily Returns

DJ Mediaprint Logistics  vs.  Ashapura Minechem Limited

DJ Mediaprint Logistics

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in DJ Mediaprint Logistics are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, DJ Mediaprint unveiled solid returns over the last few months and may actually be approaching a breakup point.

Ashapura Minechem

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ashapura Minechem Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain primary indicators, Ashapura Minechem reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DJ Mediaprint and Ashapura Minechem

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

The idea behind DJ Mediaprint Logistics and Ashapura Minechem Limited 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.