Correlation Between Medican Enterprises and FLJ Old
Can any of the company-specific risk be diversified away by investing in both Medican Enterprises and FLJ Old 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 Medican Enterprises and FLJ Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medican Enterprises and FLJ Old, you can compare the effects of market volatilities on Medican Enterprises and FLJ Old 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 Medican Enterprises with a short position of FLJ Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medican Enterprises and FLJ Old.
Diversification Opportunities for Medican Enterprises and FLJ Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Medican and FLJ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Medican Enterprises and FLJ Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLJ Old and Medican Enterprises 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 Medican Enterprises are associated (or correlated) with FLJ Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLJ Old has no effect on the direction of Medican Enterprises i.e., Medican Enterprises and FLJ Old go up and down completely randomly.
Pair Corralation between Medican Enterprises and FLJ Old
Given the investment horizon of 90 days Medican Enterprises is expected to generate 4.84 times more return on investment than FLJ Old. However, Medican Enterprises is 4.84 times more volatile than FLJ Old. It trades about 0.1 of its potential returns per unit of risk. FLJ Old is currently generating about 0.08 per unit of risk. If you would invest 0.00 in Medican Enterprises on November 3, 2024 and sell it today you would earn a total of 0.01 from holding Medican Enterprises or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
Medican Enterprises vs. FLJ Old
Performance |
| Timeline |
| Medican Enterprises |
| FLJ Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Medican Enterprises and FLJ Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medican Enterprises and FLJ Old
The main advantage of trading using opposite Medican Enterprises and FLJ Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medican Enterprises position performs unexpectedly, FLJ Old 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 FLJ Old will offset losses from the drop in FLJ Old's long position.| Medican Enterprises vs. Metrospaces | Medican Enterprises vs. Jammin Java Corp | Medican Enterprises vs. Re Max Holding | Medican Enterprises vs. Kennedy Wilson Holdings |
| FLJ Old vs. Ucommune International | FLJ Old vs. New Concept Energy | FLJ Old vs. Maui Land Pineapple | FLJ Old vs. Marcus Millichap |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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