Correlation Between POWERGRID Infrastructure and DJ Mediaprint

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

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

Diversification Opportunities for POWERGRID Infrastructure and DJ Mediaprint

-0.47

Correlation Coefficient

POWERGRID Infrastructure  DJ Mediaprint

Very good diversification

The 3 months correlation between POWERGRID and DJML is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding POWERGRID Infrastructure Inves 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 POWERGRID Infrastructure 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 POWERGRID Infrastructure Investment 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 POWERGRID Infrastructure i.e., POWERGRID Infrastructure and DJ Mediaprint go up and down completely randomly.

Pair Corralation between POWERGRID Infrastructure and DJ Mediaprint

Assuming the 90 days trading horizon POWERGRID Infrastructure Investment is expected to generate 0.41 times more return on investment than DJ Mediaprint. However, POWERGRID Infrastructure Investment is 2.46 times less risky than DJ Mediaprint. It trades about 0.25 of its potential returns per unit of risk. DJ Mediaprint Logistics is currently generating about -0.05 per unit of risk. If you would invest  7,915  in POWERGRID Infrastructure Investment on April 20, 2025 and sell it today you would earn a total of  1,394  from holding POWERGRID Infrastructure Investment or generate 17.61% return on investment over 90 days.

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

POWERGRID Infrastructure Inves  vs.  DJ Mediaprint Logistics

POWERGRID Infrastructure

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in POWERGRID Infrastructure Investment are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, POWERGRID Infrastructure unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 conflicting 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.

Pair Trading with POWERGRID Infrastructure and DJ Mediaprint

The main advantage of trading using opposite POWERGRID Infrastructure and DJ Mediaprint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POWERGRID Infrastructure 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 POWERGRID Infrastructure Investment 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.

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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.