Correlation Between Medalist Diversified and CKX Lands
Can any of the company-specific risk be diversified away by investing in both Medalist Diversified and CKX Lands 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 Medalist Diversified and CKX Lands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medalist Diversified Reit and CKX Lands, you can compare the effects of market volatilities on Medalist Diversified and CKX Lands 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 Medalist Diversified with a short position of CKX Lands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medalist Diversified and CKX Lands.
Diversification Opportunities for Medalist Diversified and CKX Lands
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Medalist and CKX is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Medalist Diversified Reit and CKX Lands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKX Lands and Medalist Diversified 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 Medalist Diversified Reit are associated (or correlated) with CKX Lands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKX Lands has no effect on the direction of Medalist Diversified i.e., Medalist Diversified and CKX Lands go up and down completely randomly.
Pair Corralation between Medalist Diversified and CKX Lands
Given the investment horizon of 90 days Medalist Diversified Reit is expected to generate 0.42 times more return on investment than CKX Lands. However, Medalist Diversified Reit is 2.36 times less risky than CKX Lands. It trades about 0.13 of its potential returns per unit of risk. CKX Lands is currently generating about -0.07 per unit of risk. If you would invest 1,210 in Medalist Diversified Reit on August 31, 2024 and sell it today you would earn a total of 29.00 from holding Medalist Diversified Reit or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Medalist Diversified Reit vs. CKX Lands
Performance |
| Timeline |
| Medalist Diversified Reit |
| CKX Lands |
Medalist Diversified and CKX Lands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medalist Diversified and CKX Lands
The main advantage of trading using opposite Medalist Diversified and CKX Lands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medalist Diversified position performs unexpectedly, CKX Lands 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 CKX Lands will offset losses from the drop in CKX Lands' long position.| Medalist Diversified vs. Modiv Inc | Medalist Diversified vs. Presidio Property Trust | Medalist Diversified vs. Gladstone Commercial | Medalist Diversified vs. Generationome Properties |
| CKX Lands vs. PrimeEnergy | CKX Lands vs. MorningStar Partners, LP | CKX Lands vs. XXL Energy Corp | CKX Lands vs. Magnolia Oil Gas |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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