Correlation Between LANDSEA HOMES and Deutsche Wohnen
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By analyzing existing cross correlation between LANDSEA HOMES P and Deutsche Wohnen SE, you can compare the effects of market volatilities on LANDSEA HOMES and Deutsche Wohnen 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 LANDSEA HOMES with a short position of Deutsche Wohnen. Check out your portfolio center. Please also check ongoing floating volatility patterns of LANDSEA HOMES and Deutsche Wohnen.
Diversification Opportunities for LANDSEA HOMES and Deutsche Wohnen
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LANDSEA and Deutsche is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding LANDSEA HOMES P and Deutsche Wohnen SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Wohnen SE and LANDSEA HOMES 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 LANDSEA HOMES P are associated (or correlated) with Deutsche Wohnen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Wohnen SE has no effect on the direction of LANDSEA HOMES i.e., LANDSEA HOMES and Deutsche Wohnen go up and down completely randomly.
Pair Corralation between LANDSEA HOMES and Deutsche Wohnen
Assuming the 90 days horizon LANDSEA HOMES P is expected to generate 1.45 times more return on investment than Deutsche Wohnen. However, LANDSEA HOMES is 1.45 times more volatile than Deutsche Wohnen SE. It trades about 0.03 of its potential returns per unit of risk. Deutsche Wohnen SE is currently generating about 0.01 per unit of risk. If you would invest 635.00 in LANDSEA HOMES P on October 30, 2024 and sell it today you would earn a total of 155.00 from holding LANDSEA HOMES P or generate 24.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LANDSEA HOMES P vs. Deutsche Wohnen SE
Performance |
| Timeline |
| LANDSEA HOMES P |
| Deutsche Wohnen SE |
LANDSEA HOMES and Deutsche Wohnen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LANDSEA HOMES and Deutsche Wohnen
The main advantage of trading using opposite LANDSEA HOMES and Deutsche Wohnen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LANDSEA HOMES position performs unexpectedly, Deutsche Wohnen 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 Deutsche Wohnen will offset losses from the drop in Deutsche Wohnen's long position.| LANDSEA HOMES vs. SLR Investment Corp | LANDSEA HOMES vs. New Residential Investment | LANDSEA HOMES vs. MGIC INVESTMENT | LANDSEA HOMES vs. Mitsubishi Gas Chemical |
| Deutsche Wohnen vs. Gateway Real Estate | Deutsche Wohnen vs. Gateway Real Estate | Deutsche Wohnen vs. TIMES CHINA HLDGS | Deutsche Wohnen vs. LANDSEA HOMES P |
Check out your portfolio center.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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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