Correlation Between Curbline Properties and MDJM

Can any of the company-specific risk be diversified away by investing in both Curbline 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 Curbline Properties and MDJM into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Curbline Properties Corp and MDJM, you can compare the effects of market volatilities on Curbline 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 Curbline Properties with a short position of MDJM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curbline Properties and MDJM.

Diversification Opportunities for Curbline Properties and MDJM

-0.32

Correlation Coefficient

Curbline Properties  MDJM

Very good diversification

The 3 months correlation between Curbline and MDJM is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Curbline Properties Corp and MDJM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDJM and Curbline 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 Curbline Properties Corp 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 Curbline Properties i.e., Curbline Properties and MDJM go up and down completely randomly.

Pair Corralation between Curbline Properties and MDJM

Given the investment horizon of 90 days Curbline Properties Corp is expected to generate 0.11 times more return on investment than MDJM. However, Curbline Properties Corp is 8.92 times less risky than MDJM. It trades about 0.04 of its potential returns per unit of risk. MDJM is currently generating about -0.08 per unit of risk. If you would invest  2,295  in Curbline Properties Corp on October 27, 2024 and sell it today you would earn a total of  76.00  from holding Curbline Properties Corp or generate 3.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Curbline Properties Corp  vs.  MDJM

Curbline Properties Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Curbline Properties Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Curbline Properties is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

MDJM

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MDJM has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's forward-looking signals remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Curbline Properties and MDJM

The main advantage of trading using opposite Curbline Properties and MDJM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curbline 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.

The idea behind Curbline Properties Corp and MDJM pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.