Correlation Between Agree Realty and MDJM
Can any of the company-specific risk be diversified away by investing in both Agree Realty and MDJM 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 Agree Realty and MDJM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agree Realty and MDJM, you can compare the effects of market volatilities on Agree Realty and MDJM 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 Agree Realty with a short position of MDJM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agree Realty and MDJM.
Diversification Opportunities for Agree Realty and MDJM
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Agree and MDJM is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Agree Realty and MDJM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDJM and Agree Realty 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 Agree Realty are associated (or correlated) with MDJM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MDJM has no effect on the direction of Agree Realty i.e., Agree Realty and MDJM go up and down completely randomly.
Pair Corralation between Agree Realty and MDJM
Assuming the 90 days trading horizon Agree Realty is expected to generate 0.06 times more return on investment than MDJM. However, Agree Realty is 15.5 times less risky than MDJM. It trades about -0.29 of its potential returns per unit of risk. MDJM is currently generating about -0.08 per unit of risk. If you would invest 2,050 in Agree Realty on September 26, 2024 and sell it today you would lose (224.00) from holding Agree Realty or give up 10.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agree Realty vs. MDJM
Performance |
| Timeline |
| Agree Realty |
| MDJM |
Agree Realty and MDJM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agree Realty and MDJM
The main advantage of trading using opposite Agree Realty and MDJM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agree Realty position performs unexpectedly, MDJM 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 MDJM will offset losses from the drop in MDJM's long position.| Agree Realty vs. Federal Realty Investment | Agree Realty vs. Vornado Realty Trust | Agree Realty vs. Rexford Industrial Realty | Agree Realty vs. Digital Realty Trust |
| MDJM vs. Wetouch Technology Common | MDJM vs. New Concept Energy | MDJM vs. DigitalBridge Group | MDJM vs. DigitalBridge Group |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |