Correlation Between MDJM and FLJ Old
Can any of the company-specific risk be diversified away by investing in both MDJM 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 MDJM and FLJ Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MDJM and FLJ Old, you can compare the effects of market volatilities on MDJM 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 MDJM with a short position of FLJ Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of MDJM and FLJ Old.
Diversification Opportunities for MDJM and FLJ Old
Pay attention - limited upside
The 3 months correlation between MDJM and FLJ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MDJM and FLJ Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLJ Old 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 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 MDJM i.e., MDJM and FLJ Old go up and down completely randomly.
Pair Corralation between MDJM and FLJ Old
Given the investment horizon of 90 days MDJM is expected to under-perform the FLJ Old. But the stock apears to be less risky and, when comparing its historical volatility, MDJM is 2.38 times less risky than FLJ Old. The stock trades about -0.03 of its potential returns per unit of risk. The FLJ Old is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 71.00 in FLJ Old on November 3, 2024 and sell it today you would earn a total of 48.00 from holding FLJ Old or generate 67.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 54.87% |
| Values | Daily Returns |
MDJM vs. FLJ Old
Performance |
| Timeline |
| MDJM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| FLJ Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MDJM and FLJ Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MDJM and FLJ Old
The main advantage of trading using opposite MDJM and FLJ Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MDJM 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.| MDJM vs. Fangdd Network Group | MDJM vs. Ucommune International | MDJM vs. Ohmyhome Limited Ordinary | MDJM vs. Southcorp Capital |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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