Correlation Between Avalon GloboCare and Re Max
Can any of the company-specific risk be diversified away by investing in both Avalon GloboCare and Re Max 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 Re Max 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 Re Max Holding, you can compare the effects of market volatilities on Avalon GloboCare and Re Max 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 Re Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avalon GloboCare and Re Max.
Diversification Opportunities for Avalon GloboCare and Re Max
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Avalon and RMAX is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Avalon GloboCare Corp and Re Max Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Re Max Holding 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 Re Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Re Max Holding has no effect on the direction of Avalon GloboCare i.e., Avalon GloboCare and Re Max go up and down completely randomly.
Pair Corralation between Avalon GloboCare and Re Max
Given the investment horizon of 90 days Avalon GloboCare Corp is expected to generate 2.1 times more return on investment than Re Max. However, Avalon GloboCare is 2.1 times more volatile than Re Max Holding. It trades about -0.01 of its potential returns per unit of risk. Re Max Holding is currently generating about -0.06 per unit of risk. If you would invest 343.00 in Avalon GloboCare Corp on November 3, 2024 and sell it today you would lose (13.00) from holding Avalon GloboCare Corp or give up 3.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avalon GloboCare Corp vs. Re Max Holding
Performance |
| Timeline |
| Avalon GloboCare Corp |
| Re Max Holding |
Avalon GloboCare and Re Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avalon GloboCare and Re Max
The main advantage of trading using opposite Avalon GloboCare and Re Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avalon GloboCare position performs unexpectedly, Re Max 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 Re Max will offset losses from the drop in Re Max's 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 |
| Re Max vs. Marcus Millichap | Re Max vs. Frp Holdings Ord | Re Max vs. Maui Land Pineapple | Re Max vs. Transcontinental Realty Investors |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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