Correlation Between DJ Mediaprint and Generic Engineering

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

Diversification Opportunities for DJ Mediaprint and Generic Engineering

-0.51

Correlation Coefficient

DJ Mediaprint  Generic Engineering

Excellent diversification

The 3 months correlation between DJML and Generic is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding DJ Mediaprint Logistics and Generic Engineering Constructi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generic Engineering 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 Generic Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generic Engineering has no effect on the direction of DJ Mediaprint i.e., DJ Mediaprint and Generic Engineering go up and down completely randomly.

Pair Corralation between DJ Mediaprint and Generic Engineering

Assuming the 90 days trading horizon DJ Mediaprint Logistics is expected to under-perform the Generic Engineering. But the stock apears to be less risky and, when comparing its historical volatility, DJ Mediaprint Logistics is 1.49 times less risky than Generic Engineering. The stock trades about -0.06 of its potential returns per unit of risk. The Generic Engineering Construction is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  3,506  in Generic Engineering Construction on April 22, 2025 and sell it today you would earn a total of  449.00  from holding Generic Engineering Construction or generate 12.81% return on investment over 90 days.

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

DJ Mediaprint Logistics  vs.  Generic Engineering Constructi

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 latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Generic Engineering

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Generic Engineering Construction are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating fundamental indicators, Generic Engineering sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DJ Mediaprint and Generic Engineering

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

The idea behind DJ Mediaprint Logistics and Generic Engineering Construction 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.