Correlation Between EXp World and Bigcommerce Holdings
Can any of the company-specific risk be diversified away by investing in both EXp World and Bigcommerce 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 EXp World and Bigcommerce Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eXp World Holdings and Bigcommerce Holdings, you can compare the effects of market volatilities on EXp World and Bigcommerce 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 EXp World with a short position of Bigcommerce Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXp World and Bigcommerce Holdings.
Diversification Opportunities for EXp World and Bigcommerce Holdings
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between EXp and Bigcommerce is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding eXp World Holdings and Bigcommerce Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bigcommerce Holdings and EXp World 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 eXp World Holdings are associated (or correlated) with Bigcommerce Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bigcommerce Holdings has no effect on the direction of EXp World i.e., EXp World and Bigcommerce Holdings go up and down completely randomly.
Pair Corralation between EXp World and Bigcommerce Holdings
Given the investment horizon of 90 days eXp World Holdings is expected to generate 0.95 times more return on investment than Bigcommerce Holdings. However, eXp World Holdings is 1.06 times less risky than Bigcommerce Holdings. It trades about 0.08 of its potential returns per unit of risk. Bigcommerce Holdings is currently generating about -0.02 per unit of risk. If you would invest 1,060 in eXp World Holdings on September 2, 2024 and sell it today you would earn a total of 325.00 from holding eXp World Holdings or generate 30.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
eXp World Holdings vs. Bigcommerce Holdings
Performance |
| Timeline |
| eXp World Holdings |
| Bigcommerce Holdings |
EXp World and Bigcommerce Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXp World and Bigcommerce Holdings
The main advantage of trading using opposite EXp World and Bigcommerce Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXp World position performs unexpectedly, Bigcommerce 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 Bigcommerce Holdings will offset losses from the drop in Bigcommerce Holdings' long position.| EXp World vs. Re Max Holding | EXp World vs. Frp Holdings Ord | EXp World vs. Maui Land Pineapple | EXp World vs. Redfin Corp |
| Bigcommerce Holdings vs. nCino Inc | Bigcommerce Holdings vs. ZoomInfo Technologies | Bigcommerce Holdings vs. Gitlab Inc | Bigcommerce Holdings vs. MondayCom |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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