Correlation Between Fathom Holdings and EXp World
Can any of the company-specific risk be diversified away by investing in both Fathom Holdings and EXp World 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 Fathom Holdings and EXp World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fathom Holdings and eXp World Holdings, you can compare the effects of market volatilities on Fathom Holdings and EXp World 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 Fathom Holdings with a short position of EXp World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fathom Holdings and EXp World.
Diversification Opportunities for Fathom Holdings and EXp World
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fathom and EXp is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Fathom Holdings and eXp World Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eXp World Holdings and Fathom Holdings 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 Fathom Holdings are associated (or correlated) with EXp World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eXp World Holdings has no effect on the direction of Fathom Holdings i.e., Fathom Holdings and EXp World go up and down completely randomly.
Pair Corralation between Fathom Holdings and EXp World
Given the investment horizon of 90 days Fathom Holdings is expected to under-perform the EXp World. In addition to that, Fathom Holdings is 1.56 times more volatile than eXp World Holdings. It trades about -0.27 of its total potential returns per unit of risk. eXp World Holdings is currently generating about 0.07 per unit of volatility. If you would invest 1,273 in eXp World Holdings on August 24, 2024 and sell it today you would earn a total of 52.00 from holding eXp World Holdings or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fathom Holdings vs. eXp World Holdings
Performance |
| Timeline |
| Fathom Holdings |
| eXp World Holdings |
Fathom Holdings and EXp World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fathom Holdings and EXp World
The main advantage of trading using opposite Fathom Holdings and EXp World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fathom Holdings position performs unexpectedly, EXp World 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 EXp World will offset losses from the drop in EXp World's long position.| Fathom Holdings vs. New England Realty | Fathom Holdings vs. Frp Holdings Ord | Fathom Holdings vs. Marcus Millichap | Fathom Holdings vs. Transcontinental Realty Investors |
| EXp World vs. Re Max Holding | EXp World vs. Fathom Holdings | EXp World vs. Anywhere Real Estate | EXp World vs. RMR Group |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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