Correlation Between J W and Opendoor Technologies
Can any of the company-specific risk be diversified away by investing in both J W 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 J W and Opendoor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J W Mays and Opendoor Technologies, you can compare the effects of market volatilities on J W 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 J W with a short position of Opendoor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of J W and Opendoor Technologies.
Diversification Opportunities for J W and Opendoor Technologies
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between MAYS and Opendoor is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding J W Mays and Opendoor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opendoor Technologies and J W 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 J W Mays 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 J W i.e., J W and Opendoor Technologies go up and down completely randomly.
Pair Corralation between J W and Opendoor Technologies
Given the investment horizon of 90 days J W Mays is expected to under-perform the Opendoor Technologies. But the stock apears to be less risky and, when comparing its historical volatility, J W Mays is 5.5 times less risky than Opendoor Technologies. The stock trades about -0.38 of its potential returns per unit of risk. The Opendoor Technologies is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 187.00 in Opendoor Technologies on August 27, 2024 and sell it today you would earn a total of 41.00 from holding Opendoor Technologies or generate 21.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
J W Mays vs. Opendoor Technologies
Performance |
| Timeline |
| J W Mays |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Opendoor Technologies |
J W and Opendoor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J W and Opendoor Technologies
The main advantage of trading using opposite J W and Opendoor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J W 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.| J W vs. Investcorp Credit Management | J W vs. Medalist Diversified Reit | J W vs. Aquagold International | J W vs. Morningstar Unconstrained Allocation |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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