Correlation Between CBL Associates and Opendoor Technologies
Can any of the company-specific risk be diversified away by investing in both CBL Associates and Opendoor Technologies 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 CBL Associates and Opendoor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBL Associates Properties and Opendoor Technologies, you can compare the effects of market volatilities on CBL Associates and Opendoor Technologies 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 CBL Associates with a short position of Opendoor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Opendoor Technologies.
Diversification Opportunities for CBL Associates and Opendoor Technologies
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBL and Opendoor is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and Opendoor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opendoor Technologies and CBL Associates 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 CBL Associates Properties are associated (or correlated) with Opendoor Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opendoor Technologies has no effect on the direction of CBL Associates i.e., CBL Associates and Opendoor Technologies go up and down completely randomly.
Pair Corralation between CBL Associates and Opendoor Technologies
Considering the 90-day investment horizon CBL Associates is expected to generate 1.9 times less return on investment than Opendoor Technologies. But when comparing it to its historical volatility, CBL Associates Properties is 4.63 times less risky than Opendoor Technologies. It trades about 0.45 of its potential returns per unit of risk. Opendoor Technologies is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 187.00 in Opendoor Technologies on August 28, 2024 and sell it today you would earn a total of 41.00 from holding Opendoor Technologies or generate 21.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBL Associates Properties vs. Opendoor Technologies
Performance |
| Timeline |
| CBL Associates Properties |
| Opendoor Technologies |
CBL Associates and Opendoor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and Opendoor Technologies
The main advantage of trading using opposite CBL Associates and Opendoor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates position performs unexpectedly, Opendoor Technologies 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 Opendoor Technologies will offset losses from the drop in Opendoor Technologies' long position.| CBL Associates vs. Investcorp Credit Management | CBL Associates vs. Medalist Diversified Reit | CBL Associates vs. Aquagold International | CBL Associates vs. Morningstar Unconstrained Allocation |
| Opendoor Technologies vs. eXp World Holdings | Opendoor Technologies vs. Offerpad Solutions | Opendoor Technologies vs. Re Max Holding | Opendoor Technologies vs. Anywhere Real Estate |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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