Correlation Between MDJM and FLJ
Can any of the company-specific risk be diversified away by investing in both MDJM and FLJ 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 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MDJM and FLJ Group, you can compare the effects of market volatilities on MDJM and FLJ 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of MDJM and FLJ.
Diversification Opportunities for MDJM and FLJ
Pay attention - limited upside
The 3 months correlation between MDJM and FLJ is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding MDJM and FLJ Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLJ 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 FLJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLJ Group has no effect on the direction of MDJM i.e., MDJM and FLJ go up and down completely randomly.
Pair Corralation between MDJM and FLJ
If you would invest 119.00 in FLJ Group on August 28, 2024 and sell it today you would earn a total of 0.00 from holding FLJ Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
MDJM vs. FLJ Group
Performance |
| Timeline |
| MDJM |
| FLJ Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MDJM and FLJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MDJM and FLJ
The main advantage of trading using opposite MDJM and FLJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MDJM position performs unexpectedly, FLJ 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 will offset losses from the drop in FLJ's long position.| MDJM vs. Fangdd Network Group | MDJM vs. Ucommune International | MDJM vs. Ohmyhome Limited Ordinary | MDJM vs. Southcorp Capital |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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