Correlation Between Metrospaces and Leju Holdings
Can any of the company-specific risk be diversified away by investing in both Metrospaces 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 Metrospaces and Leju Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metrospaces and Leju Holdings Limited, you can compare the effects of market volatilities on Metrospaces 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 Metrospaces with a short position of Leju Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metrospaces and Leju Holdings.
Diversification Opportunities for Metrospaces and Leju Holdings
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Metrospaces and Leju is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Metrospaces 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 Metrospaces 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 Metrospaces 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 Metrospaces i.e., Metrospaces and Leju Holdings go up and down completely randomly.
Pair Corralation between Metrospaces and Leju Holdings
Given the investment horizon of 90 days Metrospaces is expected to generate 24.39 times more return on investment than Leju Holdings. However, Metrospaces is 24.39 times more volatile than Leju Holdings Limited. It trades about 0.24 of its potential returns per unit of risk. Leju Holdings Limited is currently generating about 0.09 per unit of risk. If you would invest 0.00 in Metrospaces on August 31, 2024 and sell it today you would earn a total of 0.01 from holding Metrospaces or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.58% |
| Values | Daily Returns |
Metrospaces vs. Leju Holdings Limited
Performance |
| Timeline |
| Metrospaces |
| Leju Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Metrospaces and Leju Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metrospaces and Leju Holdings
The main advantage of trading using opposite Metrospaces and Leju Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metrospaces 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.| Metrospaces vs. IRSA Inversiones Y | Metrospaces vs. Anywhere Real Estate | Metrospaces vs. Newmark Group | Metrospaces vs. New York City |
| Leju Holdings vs. Ucommune International | Leju Holdings vs. Fangdd Network Group | Leju Holdings vs. Jammin Java Corp | Leju Holdings vs. Avalon GloboCare Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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