Correlation Between Leju Holdings and IRSA Inversiones
Can any of the company-specific risk be diversified away by investing in both Leju Holdings and IRSA Inversiones 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 Leju Holdings and IRSA Inversiones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leju Holdings Limited and IRSA Inversiones Y, you can compare the effects of market volatilities on Leju Holdings and IRSA Inversiones 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 Leju Holdings with a short position of IRSA Inversiones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leju Holdings and IRSA Inversiones.
Diversification Opportunities for Leju Holdings and IRSA Inversiones
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Leju and IRSA is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Leju Holdings Limited and IRSA Inversiones Y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IRSA Inversiones Y and Leju 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 Leju Holdings Limited are associated (or correlated) with IRSA Inversiones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IRSA Inversiones Y has no effect on the direction of Leju Holdings i.e., Leju Holdings and IRSA Inversiones go up and down completely randomly.
Pair Corralation between Leju Holdings and IRSA Inversiones
If you would invest 1,193 in IRSA Inversiones Y on August 28, 2024 and sell it today you would earn a total of 408.00 from holding IRSA Inversiones Y or generate 34.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 2.38% |
| Values | Daily Returns |
Leju Holdings Limited vs. IRSA Inversiones Y
Performance |
| Timeline |
| Leju Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| IRSA Inversiones Y |
Leju Holdings and IRSA Inversiones Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leju Holdings and IRSA Inversiones
The main advantage of trading using opposite Leju Holdings and IRSA Inversiones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leju Holdings position performs unexpectedly, IRSA Inversiones 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 IRSA Inversiones will offset losses from the drop in IRSA Inversiones' long position.| Leju Holdings vs. Ucommune International | Leju Holdings vs. Fangdd Network Group | Leju Holdings vs. Jammin Java Corp | Leju Holdings vs. Avalon GloboCare Corp |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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