Correlation Between Masterbeat and Leju Holdings
Can any of the company-specific risk be diversified away by investing in both Masterbeat 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 Masterbeat and Leju Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Masterbeat and Leju Holdings Limited, you can compare the effects of market volatilities on Masterbeat 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 Masterbeat with a short position of Leju Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masterbeat and Leju Holdings.
Diversification Opportunities for Masterbeat and Leju Holdings
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Masterbeat and Leju is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Masterbeat 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 Masterbeat 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 Masterbeat 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 Masterbeat i.e., Masterbeat and Leju Holdings go up and down completely randomly.
Pair Corralation between Masterbeat and Leju Holdings
Given the investment horizon of 90 days Masterbeat is expected to generate 8.07 times more return on investment than Leju Holdings. However, Masterbeat is 8.07 times more volatile than Leju Holdings Limited. It trades about 0.1 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 0.05 in Masterbeat on August 31, 2024 and sell it today you would lose (0.05) from holding Masterbeat or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 19.75% |
| Values | Daily Returns |
Masterbeat vs. Leju Holdings Limited
Performance |
| Timeline |
| Masterbeat |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Leju Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Masterbeat and Leju Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masterbeat and Leju Holdings
The main advantage of trading using opposite Masterbeat and Leju Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masterbeat 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.| Masterbeat vs. Fangdd Network Group | Masterbeat vs. Altisource Portfolio Solutions | Masterbeat vs. Medican Enterprises | Masterbeat vs. Jammin Java Corp |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |