Correlation Between Leju Holdings and Re Max
Can any of the company-specific risk be diversified away by investing in both Leju Holdings and Re Max 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 Re Max 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 Re Max Holding, you can compare the effects of market volatilities on Leju Holdings and Re Max 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 Re Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leju Holdings and Re Max.
Diversification Opportunities for Leju Holdings and Re Max
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Leju and RMAX is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Leju Holdings Limited and Re Max Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Re Max Holding 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 Re Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Re Max Holding has no effect on the direction of Leju Holdings i.e., Leju Holdings and Re Max go up and down completely randomly.
Pair Corralation between Leju Holdings and Re Max
If you would invest 1,234 in Re Max Holding on August 28, 2024 and sell it today you would earn a total of 170.00 from holding Re Max Holding or generate 13.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Leju Holdings Limited vs. Re Max Holding
Performance |
| Timeline |
| Leju Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Re Max Holding |
Leju Holdings and Re Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leju Holdings and Re Max
The main advantage of trading using opposite Leju Holdings and Re Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leju Holdings position performs unexpectedly, Re Max 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 Re Max will offset losses from the drop in Re Max's 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 |
| Re Max vs. Marcus Millichap | Re Max vs. Frp Holdings Ord | Re Max vs. Maui Land Pineapple | Re Max vs. Transcontinental Realty Investors |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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