Correlation Between MDJM and Ke Holdings
Can any of the company-specific risk be diversified away by investing in both MDJM and Ke Holdings 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 MDJM and Ke Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MDJM and Ke Holdings, you can compare the effects of market volatilities on MDJM and Ke Holdings 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 MDJM with a short position of Ke Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MDJM and Ke Holdings.
Diversification Opportunities for MDJM and Ke Holdings
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MDJM and BEKE is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding MDJM and Ke Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ke Holdings and MDJM 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 MDJM are associated (or correlated) with Ke Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ke Holdings has no effect on the direction of MDJM i.e., MDJM and Ke Holdings go up and down completely randomly.
Pair Corralation between MDJM and Ke Holdings
Given the investment horizon of 90 days MDJM is expected to under-perform the Ke Holdings. In addition to that, MDJM is 2.3 times more volatile than Ke Holdings. It trades about -0.04 of its total potential returns per unit of risk. Ke Holdings is currently generating about 0.03 per unit of volatility. If you would invest 1,552 in Ke Holdings on September 2, 2024 and sell it today you would earn a total of 333.00 from holding Ke Holdings or generate 21.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MDJM vs. Ke Holdings
Performance |
| Timeline |
| MDJM |
| Ke Holdings |
MDJM and Ke Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MDJM and Ke Holdings
The main advantage of trading using opposite MDJM and Ke Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MDJM position performs unexpectedly, Ke Holdings 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 Ke Holdings will offset losses from the drop in Ke Holdings' long position.| MDJM vs. Fangdd Network Group | MDJM vs. Ucommune International | MDJM vs. Ohmyhome Limited Ordinary | MDJM vs. Southcorp Capital |
| Ke Holdings vs. Marcus Millichap | Ke Holdings vs. Digitalbridge Group | Ke Holdings vs. Jones Lang LaSalle | Ke Holdings vs. CBRE Group Class |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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