Correlation Between DJ Mediaprint and HT Media

Can any of the company-specific risk be diversified away by investing in both DJ Mediaprint and HT 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 DJ Mediaprint and HT Media 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 HT Media Limited, you can compare the effects of market volatilities on DJ Mediaprint and HT 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 DJ Mediaprint with a short position of HT Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of DJ Mediaprint and HT Media.

Diversification Opportunities for DJ Mediaprint and HT Media

-0.16

Correlation Coefficient

DJ Mediaprint  HT Media

Good diversification

The 3 months correlation between DJML and HTMEDIA is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding DJ Mediaprint Logistics and HT Media Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HT Media Limited 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 HT Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HT Media Limited has no effect on the direction of DJ Mediaprint i.e., DJ Mediaprint and HT Media go up and down completely randomly.

Pair Corralation between DJ Mediaprint and HT Media

Assuming the 90 days trading horizon DJ Mediaprint Logistics is expected to under-perform the HT Media. But the stock apears to be less risky and, when comparing its historical volatility, DJ Mediaprint Logistics is 1.62 times less risky than HT Media. The stock trades about -0.26 of its potential returns per unit of risk. The HT Media Limited is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  2,295  in HT Media Limited on October 25, 2024 and sell it today you would lose (163.00) from holding HT Media Limited or give up 7.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

DJ Mediaprint Logistics  vs.  HT Media Limited

DJ Mediaprint Logistics

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in DJ Mediaprint Logistics are ranked lower than 13 (%) 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.

HT Media Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HT Media Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with DJ Mediaprint and HT Media

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

The idea behind DJ Mediaprint Logistics and HT Media 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.

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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.