Correlation Between Maui Land and Leju Holdings
Can any of the company-specific risk be diversified away by investing in both Maui Land and Leju 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 Maui Land and Leju Holdings 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 Leju Holdings Limited, you can compare the effects of market volatilities on Maui Land and Leju 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 Maui Land with a short position of Leju Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maui Land and Leju Holdings.
Diversification Opportunities for Maui Land and Leju Holdings
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maui and Leju is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Maui Land Pineapple and Leju Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leju Holdings Limited 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 Leju Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leju Holdings Limited has no effect on the direction of Maui Land i.e., Maui Land and Leju Holdings go up and down completely randomly.
Pair Corralation between Maui Land and Leju Holdings
If you would invest 2,129 in Maui Land Pineapple on August 28, 2024 and sell it today you would earn a total of 244.00 from holding Maui Land Pineapple or generate 11.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.33% |
| Values | Daily Returns |
Maui Land Pineapple vs. Leju Holdings Limited
Performance |
| Timeline |
| Maui Land Pineapple |
| Leju Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Maui Land and Leju Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maui Land and Leju Holdings
The main advantage of trading using opposite Maui Land and Leju Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maui Land position performs unexpectedly, Leju 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 Leju Holdings will offset losses from the drop in Leju Holdings' long position.| Maui Land vs. New England Realty | Maui Land vs. Marcus Millichap | Maui Land vs. FirstService Corp | Maui Land vs. Frp Holdings Ord |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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