Correlation Between Maui Land and New England

Can any of the company-specific risk be diversified away by investing in both Maui Land and New England 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 New England 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 New England Realty, you can compare the effects of market volatilities on Maui Land and New England 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 New England. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maui Land and New England.

Diversification Opportunities for Maui Land and New England

0.03

Correlation Coefficient

Maui Land  New England

Significant diversification

The 3 months correlation between Maui and New is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Maui Land Pineapple and New England Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New England Realty 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 New England. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New England Realty has no effect on the direction of Maui Land i.e., Maui Land and New England go up and down completely randomly.

Pair Corralation between Maui Land and New England

Considering the 90-day investment horizon Maui Land Pineapple is expected to under-perform the New England. But the stock apears to be less risky and, when comparing its historical volatility, Maui Land Pineapple is 1.09 times less risky than New England. The stock trades about -0.15 of its potential returns per unit of risk. The New England Realty is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  7,426  in New England Realty on December 26, 2024 and sell it today you would earn a total of  410.00  from holding New England Realty or generate 5.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	66.67%
Values	Daily Returns

Maui Land Pineapple  vs.  New England Realty

Maui Land Pineapple

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maui Land Pineapple has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

New England Realty

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in New England Realty are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain technical and fundamental indicators, New England may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Maui Land and New England

The main advantage of trading using opposite Maui Land and New England positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maui Land position performs unexpectedly, New England 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 New England will offset losses from the drop in New England's long position.

The idea behind Maui Land Pineapple and New England Realty 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.