Correlation Between Urban Edge and MDJM
Can any of the company-specific risk be diversified away by investing in both Urban Edge 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 Urban Edge and MDJM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Edge Properties and MDJM, you can compare the effects of market volatilities on Urban Edge 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 Urban Edge with a short position of MDJM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and MDJM.
Diversification Opportunities for Urban Edge and MDJM
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Urban and MDJM is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge Properties and MDJM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDJM and Urban Edge 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 Urban Edge Properties 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 Urban Edge i.e., Urban Edge and MDJM go up and down completely randomly.
Pair Corralation between Urban Edge and MDJM
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to generate 0.08 times more return on investment than MDJM. However, Urban Edge Properties is 13.1 times less risky than MDJM. It trades about 0.17 of its potential returns per unit of risk. MDJM is currently generating about -0.25 per unit of risk. If you would invest 2,195 in Urban Edge Properties on August 24, 2024 and sell it today you would earn a total of 98.50 from holding Urban Edge Properties or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. MDJM
Performance |
| Timeline |
| Urban Edge Properties |
| MDJM |
Urban Edge and MDJM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and MDJM
The main advantage of trading using opposite Urban Edge and MDJM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge 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.| Urban Edge vs. Saul Centers | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group | Urban Edge vs. Retail Opportunity Investments |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |