Correlation Between VICI Properties and MDJM
Can any of the company-specific risk be diversified away by investing in both VICI Properties 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 VICI Properties and MDJM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VICI Properties and MDJM, you can compare the effects of market volatilities on VICI Properties 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 VICI Properties with a short position of MDJM. Check out your portfolio center. Please also check ongoing floating volatility patterns of VICI Properties and MDJM.
Diversification Opportunities for VICI Properties and MDJM
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VICI and MDJM is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding VICI Properties and MDJM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDJM and VICI Properties 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 VICI 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 VICI Properties i.e., VICI Properties and MDJM go up and down completely randomly.
Pair Corralation between VICI Properties and MDJM
Given the investment horizon of 90 days VICI Properties is expected to generate 0.08 times more return on investment than MDJM. However, VICI Properties is 12.74 times less risky than MDJM. It trades about -0.18 of its potential returns per unit of risk. MDJM is currently generating about -0.08 per unit of risk. If you would invest 3,191 in VICI Properties on September 26, 2024 and sell it today you would lose (267.00) from holding VICI Properties or give up 8.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VICI Properties vs. MDJM
Performance |
| Timeline |
| VICI Properties |
| MDJM |
VICI Properties and MDJM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VICI Properties and MDJM
The main advantage of trading using opposite VICI Properties and MDJM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VICI Properties 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.| VICI Properties vs. Newlake Capital Partners | VICI Properties vs. EPR Properties | VICI Properties vs. Digital Realty Trust | VICI Properties vs. EPR Properties |
| MDJM vs. Wetouch Technology Common | MDJM vs. New Concept Energy | MDJM vs. DigitalBridge Group | MDJM vs. DigitalBridge Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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