Correlation Between Muthoot Finance and DJ Mediaprint

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

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

Diversification Opportunities for Muthoot Finance and DJ Mediaprint

0.0

Correlation Coefficient

Muthoot Finance  DJ Mediaprint

Pay attention - limited upside

The 3 months correlation between Muthoot and DJML is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Muthoot Finance 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 Muthoot Finance 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 Muthoot Finance 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 Muthoot Finance i.e., Muthoot Finance and DJ Mediaprint go up and down completely randomly.

Pair Corralation between Muthoot Finance and DJ Mediaprint

If you would invest (100.00) in Muthoot Finance Limited on December 26, 2024 and sell it today you would earn a total of  100.00  from holding Muthoot Finance Limited or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Muthoot Finance Limited  vs.  DJ Mediaprint Logistics

Muthoot Finance

Risk-Adjusted Performance

OK

Over the last 90 days Muthoot Finance Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Muthoot Finance is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

DJ Mediaprint Logistics

Risk-Adjusted Performance

Very Weak

Over the last 90 days DJ Mediaprint Logistics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Muthoot Finance and DJ Mediaprint

The main advantage of trading using opposite Muthoot Finance and DJ Mediaprint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muthoot Finance 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 Muthoot Finance 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.