Correlation Between Frp Holdings and MDJM
Can any of the company-specific risk be diversified away by investing in both Frp Holdings 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 Frp Holdings and MDJM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frp Holdings Ord and MDJM, you can compare the effects of market volatilities on Frp Holdings 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 Frp Holdings with a short position of MDJM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frp Holdings and MDJM.
Diversification Opportunities for Frp Holdings and MDJM
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Frp and MDJM is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Frp Holdings Ord and MDJM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDJM and Frp Holdings 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 Frp Holdings Ord 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 Frp Holdings i.e., Frp Holdings and MDJM go up and down completely randomly.
Pair Corralation between Frp Holdings and MDJM
Given the investment horizon of 90 days Frp Holdings Ord is expected to generate 0.21 times more return on investment than MDJM. However, Frp Holdings Ord is 4.66 times less risky than MDJM. It trades about 0.02 of its potential returns per unit of risk. MDJM is currently generating about -0.02 per unit of risk. If you would invest 2,970 in Frp Holdings Ord on August 28, 2024 and sell it today you would earn a total of 231.00 from holding Frp Holdings Ord or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Frp Holdings Ord vs. MDJM
Performance |
| Timeline |
| Frp Holdings Ord |
| MDJM |
Frp Holdings and MDJM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frp Holdings and MDJM
The main advantage of trading using opposite Frp Holdings and MDJM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frp Holdings 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.| Frp Holdings vs. Transcontinental Realty Investors | Frp Holdings vs. Anywhere Real Estate | Frp Holdings vs. Re Max Holding | Frp Holdings vs. New England Realty |
| MDJM vs. Fangdd Network Group | MDJM vs. Ucommune International | MDJM vs. Ohmyhome Limited Ordinary | MDJM vs. Southcorp Capital |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |