Correlation Between CoStar and Maui Land

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

By analyzing existing cross correlation between CoStar Group and Maui Land Pineapple, you can compare the effects of market volatilities on CoStar and Maui Land 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 CoStar with a short position of Maui Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoStar and Maui Land.

Diversification Opportunities for CoStar and Maui Land

-0.05

Correlation Coefficient

CoStar  Maui Land

Good diversification

The 3 months correlation between CoStar and Maui is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding CoStar Group and Maui Land Pineapple in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maui Land Pineapple and CoStar 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 CoStar Group are associated (or correlated) with Maui Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maui Land Pineapple has no effect on the direction of CoStar i.e., CoStar and Maui Land go up and down completely randomly.

Pair Corralation between CoStar and Maui Land

Given the investment horizon of 90 days CoStar Group is expected to generate 0.56 times more return on investment than Maui Land. However, CoStar Group is 1.8 times less risky than Maui Land. It trades about 0.21 of its potential returns per unit of risk. Maui Land Pineapple is currently generating about 0.04 per unit of risk. If you would invest  7,461  in CoStar Group on May 27, 2025 and sell it today you would earn a total of  1,661  from holding CoStar Group or generate 22.26% return on investment over 90 days.

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

CoStar Group  vs.  Maui Land Pineapple

CoStar Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CoStar Group are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting technical and fundamental indicators, CoStar reported solid returns over the last few months and may actually be approaching a breakup point.

Maui Land Pineapple

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Maui Land Pineapple are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating essential indicators, Maui Land may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with CoStar and Maui Land

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

The idea behind CoStar Group and Maui Land Pineapple 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.