Correlation Between Leju Holdings and Appreciate Holdings
Can any of the company-specific risk be diversified away by investing in both Leju Holdings and Appreciate 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 Leju Holdings and Appreciate Holdings 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 Appreciate Holdings, you can compare the effects of market volatilities on Leju Holdings and Appreciate 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 Leju Holdings with a short position of Appreciate Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leju Holdings and Appreciate Holdings.
Diversification Opportunities for Leju Holdings and Appreciate Holdings
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Leju and Appreciate is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Leju Holdings Limited and Appreciate Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appreciate Holdings 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 Appreciate Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appreciate Holdings has no effect on the direction of Leju Holdings i.e., Leju Holdings and Appreciate Holdings go up and down completely randomly.
Pair Corralation between Leju Holdings and Appreciate Holdings
Given the investment horizon of 90 days Leju Holdings Limited is expected to generate 0.49 times more return on investment than Appreciate Holdings. However, Leju Holdings Limited is 2.02 times less risky than Appreciate Holdings. It trades about 0.07 of its potential returns per unit of risk. Appreciate Holdings is currently generating about 0.01 per unit of risk. If you would invest 148.00 in Leju Holdings Limited on August 28, 2024 and sell it today you would earn a total of 59.00 from holding Leju Holdings Limited or generate 39.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leju Holdings Limited vs. Appreciate Holdings
Performance |
| Timeline |
| Leju Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Appreciate Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Leju Holdings and Appreciate Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leju Holdings and Appreciate Holdings
The main advantage of trading using opposite Leju Holdings and Appreciate Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leju Holdings position performs unexpectedly, Appreciate 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 Appreciate Holdings will offset losses from the drop in Appreciate Holdings' 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 |
| Appreciate Holdings vs. Wearable Devices | Appreciate Holdings vs. EUDA Health Holdings | Appreciate Holdings vs. FOXO Technologies |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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