Correlation Between Avalon GloboCare and Leju Holdings
Can any of the company-specific risk be diversified away by investing in both Avalon GloboCare and Leju Holdings 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 Avalon GloboCare and Leju Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avalon GloboCare Corp and Leju Holdings Limited, you can compare the effects of market volatilities on Avalon GloboCare and Leju Holdings 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 Avalon GloboCare with a short position of Leju Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avalon GloboCare and Leju Holdings.
Diversification Opportunities for Avalon GloboCare and Leju Holdings
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Avalon and Leju is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Avalon GloboCare Corp and Leju Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leju Holdings Limited and Avalon GloboCare 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 Avalon GloboCare Corp are associated (or correlated) with Leju Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leju Holdings Limited has no effect on the direction of Avalon GloboCare i.e., Avalon GloboCare and Leju Holdings go up and down completely randomly.
Pair Corralation between Avalon GloboCare and Leju Holdings
If you would invest 669.00 in Avalon GloboCare Corp on August 28, 2024 and sell it today you would lose (399.00) from holding Avalon GloboCare Corp or give up 59.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.48% |
| Values | Daily Returns |
Avalon GloboCare Corp vs. Leju Holdings Limited
Performance |
| Timeline |
| Avalon GloboCare Corp |
| Leju Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Avalon GloboCare and Leju Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avalon GloboCare and Leju Holdings
The main advantage of trading using opposite Avalon GloboCare and Leju Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avalon GloboCare position performs unexpectedly, Leju Holdings 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 Leju Holdings will offset losses from the drop in Leju Holdings' long position.| Avalon GloboCare vs. Ascendas India Trust | Avalon GloboCare vs. Asia Pptys | Avalon GloboCare vs. Adler Group SA | Avalon GloboCare vs. Aztec Land Comb |
| Leju Holdings vs. Ucommune International | Leju Holdings vs. Fangdd Network Group | Leju Holdings vs. Jammin Java Corp | Leju Holdings vs. Avalon GloboCare Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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