Correlation Between DJ Mediaprint and Jaypee Infratech

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

Diversification Opportunities for DJ Mediaprint and Jaypee Infratech

0.0

Correlation Coefficient

DJ Mediaprint  Jaypee Infratech

Pay attention - limited upside

The 3 months correlation between DJML and Jaypee is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DJ Mediaprint Logistics and Jaypee Infratech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaypee Infratech 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 Jaypee Infratech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaypee Infratech has no effect on the direction of DJ Mediaprint i.e., DJ Mediaprint and Jaypee Infratech go up and down completely randomly.

Pair Corralation between DJ Mediaprint and Jaypee Infratech

If you would invest  13,466  in DJ Mediaprint Logistics on September 28, 2024 and sell it today you would earn a total of  3,599  from holding DJ Mediaprint Logistics or generate 26.73% return on investment over 90 days.

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

DJ Mediaprint Logistics  vs.  Jaypee Infratech Limited

DJ Mediaprint Logistics

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in DJ Mediaprint Logistics are ranked lower than 12 (%) 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.

Jaypee Infratech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jaypee Infratech Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Jaypee Infratech is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with DJ Mediaprint and Jaypee Infratech

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

The idea behind DJ Mediaprint Logistics and Jaypee Infratech 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .