Correlation Between Curbline Properties and MDJM
Can any of the company-specific risk be diversified away by investing in both Curbline Properties 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 Curbline Properties and MDJM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curbline Properties Corp and MDJM, you can compare the effects of market volatilities on Curbline Properties 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 Curbline Properties with a short position of MDJM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curbline Properties and MDJM.
Diversification Opportunities for Curbline Properties and MDJM
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Curbline and MDJM is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Curbline Properties Corp and MDJM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDJM and Curbline Properties 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 Curbline Properties Corp 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 Curbline Properties i.e., Curbline Properties and MDJM go up and down completely randomly.
Pair Corralation between Curbline Properties and MDJM
Given the investment horizon of 90 days Curbline Properties is expected to generate 2.98 times less return on investment than MDJM. But when comparing it to its historical volatility, Curbline Properties Corp is 17.68 times less risky than MDJM. It trades about 0.3 of its potential returns per unit of risk. MDJM is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 21.00 in MDJM on November 7, 2024 and sell it today you would lose (2.00) from holding MDJM or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Curbline Properties Corp vs. MDJM
Performance |
| Timeline |
| Curbline Properties Corp |
| MDJM |
Curbline Properties and MDJM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curbline Properties and MDJM
The main advantage of trading using opposite Curbline Properties and MDJM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curbline Properties 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.| Curbline Properties vs. Starbucks | Curbline Properties vs. Waste Management | Curbline Properties vs. Yum Brands | Curbline Properties vs. Flanigans Enterprises |
| MDJM vs. Playtika Holding Corp | MDJM vs. GameStop Corp | MDJM vs. EMCORE | MDJM vs. Nordic Semiconductor ASA |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |