Correlation Between Apartment Investment and Medallion Financial

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Can any of the company-specific risk be diversified away by investing in both Apartment Investment and Medallion Financial 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 Apartment Investment and Medallion Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apartment Investment and and Medallion Financial Corp, you can compare the effects of market volatilities on Apartment Investment and Medallion Financial 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 Apartment Investment with a short position of Medallion Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apartment Investment and Medallion Financial.

Diversification Opportunities for Apartment Investment and Medallion Financial

-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between Apartment and Medallion is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Apartment Investment and and Medallion Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medallion Financial Corp and Apartment Investment 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 Apartment Investment and are associated (or correlated) with Medallion Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medallion Financial Corp has no effect on the direction of Apartment Investment i.e., Apartment Investment and Medallion Financial go up and down completely randomly.

Pair Corralation between Apartment Investment and Medallion Financial

Considering the 90-day investment horizon Apartment Investment is expected to generate 1.5 times less return on investment than Medallion Financial. But when comparing it to its historical volatility, Apartment Investment and is 1.24 times less risky than Medallion Financial. It trades about 0.12 of its potential returns per unit of risk. Medallion Financial Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  976.00  in Medallion Financial Corp on September 8, 2025 and sell it today you would earn a total of  52.00  from holding Medallion Financial Corp or generate 5.33% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Apartment Investment and  vs.  Medallion Financial Corp

 Performance 
       Timeline  
Apartment Investment and 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Apartment Investment and are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable forward indicators, Apartment Investment is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Medallion Financial Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Medallion Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Medallion Financial is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Apartment Investment and Medallion Financial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apartment Investment and Medallion Financial

The main advantage of trading using opposite Apartment Investment and Medallion Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apartment Investment position performs unexpectedly, Medallion Financial 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 Medallion Financial will offset losses from the drop in Medallion Financial's long position.
The idea behind Apartment Investment and and Medallion Financial Corp 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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