Correlation Between Kennedy Wilson and MDJM
Can any of the company-specific risk be diversified away by investing in both Kennedy Wilson 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 Kennedy Wilson and MDJM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kennedy Wilson Holdings and MDJM, you can compare the effects of market volatilities on Kennedy Wilson 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 Kennedy Wilson with a short position of MDJM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kennedy Wilson and MDJM.
Diversification Opportunities for Kennedy Wilson and MDJM
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kennedy and MDJM is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kennedy Wilson Holdings and MDJM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDJM and Kennedy Wilson 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 Kennedy Wilson Holdings 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 Kennedy Wilson i.e., Kennedy Wilson and MDJM go up and down completely randomly.
Pair Corralation between Kennedy Wilson and MDJM
Allowing for the 90-day total investment horizon Kennedy Wilson Holdings is expected to generate 0.2 times more return on investment than MDJM. However, Kennedy Wilson Holdings is 5.09 times less risky than MDJM. It trades about 0.07 of its potential returns per unit of risk. MDJM is currently generating about -0.1 per unit of risk. If you would invest 997.00 in Kennedy Wilson Holdings on August 31, 2024 and sell it today you would earn a total of 161.00 from holding Kennedy Wilson Holdings or generate 16.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kennedy Wilson Holdings vs. MDJM
Performance |
| Timeline |
| Kennedy Wilson Holdings |
| MDJM |
Kennedy Wilson and MDJM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kennedy Wilson and MDJM
The main advantage of trading using opposite Kennedy Wilson and MDJM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kennedy Wilson 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.| Kennedy Wilson vs. Frp Holdings Ord | Kennedy Wilson vs. Transcontinental Realty Investors | Kennedy Wilson vs. Anywhere Real Estate | Kennedy Wilson vs. Re Max Holding |
| MDJM vs. Fangdd Network Group | MDJM vs. Ucommune International | MDJM vs. Redfin Corp | MDJM vs. Offerpad Solutions |
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
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |