Correlation Between Jones Lang and Opendoor Technologies
Can any of the company-specific risk be diversified away by investing in both Jones Lang 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 Jones Lang and Opendoor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jones Lang LaSalle and Opendoor Technologies, you can compare the effects of market volatilities on Jones Lang 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 Jones Lang with a short position of Opendoor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jones Lang and Opendoor Technologies.
Diversification Opportunities for Jones Lang and Opendoor Technologies
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jones and Opendoor is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jones Lang LaSalle and Opendoor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opendoor Technologies and Jones Lang 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 Jones Lang LaSalle 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 Jones Lang i.e., Jones Lang and Opendoor Technologies go up and down completely randomly.
Pair Corralation between Jones Lang and Opendoor Technologies
Considering the 90-day investment horizon Jones Lang LaSalle is expected to generate 0.61 times more return on investment than Opendoor Technologies. However, Jones Lang LaSalle is 1.63 times less risky than Opendoor Technologies. It trades about 0.0 of its potential returns per unit of risk. Opendoor Technologies is currently generating about 0.0 per unit of risk. If you would invest 26,091 in Jones Lang LaSalle on August 24, 2024 and sell it today you would lose (199.00) from holding Jones Lang LaSalle or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jones Lang LaSalle vs. Opendoor Technologies
Performance |
| Timeline |
| Jones Lang LaSalle |
| Opendoor Technologies |
Jones Lang and Opendoor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jones Lang and Opendoor Technologies
The main advantage of trading using opposite Jones Lang and Opendoor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jones Lang 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.| Jones Lang vs. Cushman Wakefield plc | Jones Lang vs. Colliers International Group | Jones Lang vs. CoStar Group | Jones Lang vs. Newmark Group |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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