Correlation Between Maui Land and FLJ

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

Diversification Opportunities for Maui Land and FLJ

-0.11

Correlation Coefficient

Maui Land  FLJ

Good diversification

The 3 months correlation between Maui and FLJ is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Maui Land Pineapple and FLJ Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLJ Group 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 FLJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLJ Group has no effect on the direction of Maui Land i.e., Maui Land and FLJ go up and down completely randomly.

Pair Corralation between Maui Land and FLJ

Considering the 90-day investment horizon Maui Land Pineapple is expected to generate 0.17 times more return on investment than FLJ. However, Maui Land Pineapple is 5.89 times less risky than FLJ. It trades about 0.09 of its potential returns per unit of risk. FLJ Group is currently generating about -0.01 per unit of risk. If you would invest  901.00  in Maui Land Pineapple on September 5, 2024 and sell it today you would earn a total of  1,425  from holding Maui Land Pineapple or generate 158.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	82.83%
Values	Daily Returns

Maui Land Pineapple  vs.  FLJ Group

Maui Land Pineapple

Risk-Adjusted Performance

0 of 100

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 relatively invariable essential indicators, Maui Land is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

FLJ Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FLJ Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady essential indicators, FLJ is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with Maui Land and FLJ

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

The idea behind Maui Land Pineapple and FLJ Group 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.