Correlation Between Mongolia Growth and MDJM
Can any of the company-specific risk be diversified away by investing in both Mongolia Growth 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 Mongolia Growth and MDJM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mongolia Growth Group and MDJM, you can compare the effects of market volatilities on Mongolia Growth 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 Mongolia Growth with a short position of MDJM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mongolia Growth and MDJM.
Diversification Opportunities for Mongolia Growth and MDJM
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mongolia and MDJM is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mongolia Growth Group and MDJM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDJM and Mongolia Growth 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 Mongolia Growth Group 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 Mongolia Growth i.e., Mongolia Growth and MDJM go up and down completely randomly.
Pair Corralation between Mongolia Growth and MDJM
Assuming the 90 days horizon Mongolia Growth Group is expected to generate 0.33 times more return on investment than MDJM. However, Mongolia Growth Group is 3.02 times less risky than MDJM. It trades about 0.02 of its potential returns per unit of risk. MDJM is currently generating about -0.04 per unit of risk. If you would invest 89.00 in Mongolia Growth Group on September 2, 2024 and sell it today you would earn a total of 8.00 from holding Mongolia Growth Group or generate 8.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mongolia Growth Group vs. MDJM
Performance |
| Timeline |
| Mongolia Growth Group |
| MDJM |
Mongolia Growth and MDJM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mongolia Growth and MDJM
The main advantage of trading using opposite Mongolia Growth and MDJM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mongolia Growth 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.| Mongolia Growth vs. Metrospaces | Mongolia Growth vs. Ke Holdings | Mongolia Growth vs. Ucommune International | Mongolia Growth vs. MDJM |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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