Correlation Between Maui Land and MDJM
Can any of the company-specific risk be diversified away by investing in both Maui Land and MDJM 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 Maui Land and MDJM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maui Land Pineapple and MDJM, you can compare the effects of market volatilities on Maui Land and MDJM 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 Maui Land with a short position of MDJM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maui Land and MDJM.
Diversification Opportunities for Maui Land and MDJM
Average diversification
The 3 months correlation between Maui and MDJM is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Maui Land Pineapple and MDJM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDJM and Maui Land 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 Maui Land Pineapple are associated (or correlated) with MDJM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MDJM has no effect on the direction of Maui Land i.e., Maui Land and MDJM go up and down completely randomly.
Pair Corralation between Maui Land and MDJM
Considering the 90-day investment horizon Maui Land Pineapple is expected to generate 0.25 times more return on investment than MDJM. However, Maui Land Pineapple is 4.07 times less risky than MDJM. It trades about 0.09 of its potential returns per unit of risk. MDJM is currently generating about -0.17 per unit of risk. If you would invest 2,129 in Maui Land Pineapple on August 28, 2024 and sell it today you would earn a total of 244.00 from holding Maui Land Pineapple or generate 11.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maui Land Pineapple vs. MDJM
Performance |
| Timeline |
| Maui Land Pineapple |
| MDJM |
Maui Land and MDJM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maui Land and MDJM
The main advantage of trading using opposite Maui Land and MDJM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maui Land position performs unexpectedly, MDJM 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 MDJM will offset losses from the drop in MDJM's long position.| Maui Land vs. New England Realty | Maui Land vs. Marcus Millichap | Maui Land vs. FirstService Corp | Maui Land vs. Frp Holdings Ord |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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