Correlation Between Maui Land and Newmark
Can any of the company-specific risk be diversified away by investing in both Maui Land and Newmark 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 Newmark 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 Newmark Group, you can compare the effects of market volatilities on Maui Land and Newmark 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 Newmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maui Land and Newmark.
Diversification Opportunities for Maui Land and Newmark
Very good diversification
The 3 months correlation between Maui and Newmark is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Maui Land Pineapple and Newmark Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmark Group 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 Newmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmark Group has no effect on the direction of Maui Land i.e., Maui Land and Newmark go up and down completely randomly.
Pair Corralation between Maui Land and Newmark
Considering the 90-day investment horizon Maui Land Pineapple is expected to generate 2.17 times more return on investment than Newmark. However, Maui Land is 2.17 times more volatile than Newmark Group. It trades about 0.1 of its potential returns per unit of risk. Newmark Group is currently generating about 0.09 per unit of risk. If you would invest 2,221 in Maui Land Pineapple on August 28, 2024 and sell it today you would earn a total of 152.00 from holding Maui Land Pineapple or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maui Land Pineapple vs. Newmark Group
Performance |
| Timeline |
| Maui Land Pineapple |
| Newmark Group |
Maui Land and Newmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maui Land and Newmark
The main advantage of trading using opposite Maui Land and Newmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maui Land position performs unexpectedly, Newmark 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 Newmark will offset losses from the drop in Newmark'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 |
| Newmark vs. Jones Lang LaSalle | Newmark vs. CBRE Group Class | Newmark vs. Colliers International Group | Newmark 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |