Correlation Between Marcus Millichap and EXp World
Can any of the company-specific risk be diversified away by investing in both Marcus Millichap 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 Marcus Millichap and EXp World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marcus Millichap and eXp World Holdings, you can compare the effects of market volatilities on Marcus Millichap 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 Marcus Millichap with a short position of EXp World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcus Millichap and EXp World.
Diversification Opportunities for Marcus Millichap and EXp World
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marcus and EXp is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Marcus Millichap 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 Marcus Millichap 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 Marcus Millichap 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 Marcus Millichap i.e., Marcus Millichap and EXp World go up and down completely randomly.
Pair Corralation between Marcus Millichap and EXp World
Considering the 90-day investment horizon Marcus Millichap is expected to generate 1.16 times less return on investment than EXp World. But when comparing it to its historical volatility, Marcus Millichap is 1.95 times less risky than EXp World. It trades about 0.28 of its potential returns per unit of risk. eXp World Holdings is currently generating about 0.16 of returns per unit of risk over similar time horizon. 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marcus Millichap vs. eXp World Holdings
Performance |
| Timeline |
| Marcus Millichap |
| eXp World Holdings |
Marcus Millichap and EXp World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marcus Millichap and EXp World
The main advantage of trading using opposite Marcus Millichap and EXp World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcus Millichap 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.| Marcus Millichap vs. Investcorp Credit Management | Marcus Millichap vs. Medalist Diversified Reit | Marcus Millichap vs. Aquagold International | Marcus Millichap vs. Morningstar Unconstrained Allocation |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges |