Correlation Between Maui Land and EXp World
Can any of the company-specific risk be diversified away by investing in both Maui Land and EXp World 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 Maui Land and EXp World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maui Land Pineapple and eXp World Holdings, you can compare the effects of market volatilities on Maui Land and EXp World 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 Maui Land with a short position of EXp World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maui Land and EXp World.
Diversification Opportunities for Maui Land and EXp World
Good diversification
The 3 months correlation between Maui and EXp is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Maui Land Pineapple and eXp World Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eXp World Holdings and Maui Land 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 Maui Land Pineapple are associated (or correlated) with EXp World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eXp World Holdings has no effect on the direction of Maui Land i.e., Maui Land and EXp World go up and down completely randomly.
Pair Corralation between Maui Land and EXp World
Considering the 90-day investment horizon Maui Land is expected to generate 1.67 times less return on investment than EXp World. In addition to that, Maui Land is 1.11 times more volatile than eXp World Holdings. It trades about 0.09 of its total potential returns per unit of risk. eXp World Holdings is currently generating about 0.16 per unit of volatility. If you would invest 1,292 in eXp World Holdings on August 27, 2024 and sell it today you would earn a total of 147.00 from holding eXp World Holdings or generate 11.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maui Land Pineapple vs. eXp World Holdings
Performance |
| Timeline |
| Maui Land Pineapple |
| eXp World Holdings |
Maui Land and EXp World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maui Land and EXp World
The main advantage of trading using opposite Maui Land and EXp World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maui Land position performs unexpectedly, EXp World 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 EXp World will offset losses from the drop in EXp World's long position.| Maui Land vs. New England Realty | Maui Land vs. Marcus Millichap | Maui Land vs. FirstService Corp | Maui Land vs. Frp Holdings Ord |
| EXp World vs. Re Max Holding | EXp World vs. Fathom Holdings | EXp World vs. Anywhere Real Estate | EXp World vs. RMR Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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