Correlation Between MDJM and Colabor
Can any of the company-specific risk be diversified away by investing in both MDJM and Colabor 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 Colabor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MDJM and Colabor Group, you can compare the effects of market volatilities on MDJM and Colabor 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 Colabor. Check out your portfolio center. Please also check ongoing floating volatility patterns of MDJM and Colabor.
Diversification Opportunities for MDJM and Colabor
Very good diversification
The 3 months correlation between MDJM and Colabor is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding MDJM and Colabor Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colabor Group 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 Colabor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Colabor Group has no effect on the direction of MDJM i.e., MDJM and Colabor go up and down completely randomly.
Pair Corralation between MDJM and Colabor
If you would invest 19.00 in MDJM on November 3, 2024 and sell it today you would earn a total of 0.00 from holding MDJM or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
MDJM vs. Colabor Group
Performance |
| Timeline |
| MDJM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Colabor Group |
MDJM and Colabor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MDJM and Colabor
The main advantage of trading using opposite MDJM and Colabor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MDJM position performs unexpectedly, Colabor 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 Colabor will offset losses from the drop in Colabor's long position.| MDJM vs. Fangdd Network Group | MDJM vs. Ucommune International | MDJM vs. Ohmyhome Limited Ordinary | MDJM vs. Southcorp Capital |
| Colabor vs. Mission Produce | Colabor vs. The Andersons | Colabor vs. Bunzl plc | Colabor vs. Innovative Food Hldg |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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