Correlation Between Offerpad Solutions and EXp World
Can any of the company-specific risk be diversified away by investing in both Offerpad Solutions 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 Offerpad Solutions and EXp World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Offerpad Solutions and eXp World Holdings, you can compare the effects of market volatilities on Offerpad Solutions 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 Offerpad Solutions with a short position of EXp World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offerpad Solutions and EXp World.
Diversification Opportunities for Offerpad Solutions and EXp World
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Offerpad and EXp is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Offerpad Solutions 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 Offerpad Solutions 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 Offerpad Solutions 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 Offerpad Solutions i.e., Offerpad Solutions and EXp World go up and down completely randomly.
Pair Corralation between Offerpad Solutions and EXp World
Given the investment horizon of 90 days Offerpad Solutions is expected to under-perform the EXp World. In addition to that, Offerpad Solutions is 1.93 times more volatile than eXp World Holdings. It trades about -0.04 of its total potential returns per unit of risk. eXp World Holdings is currently generating about 0.01 per unit of volatility. If you would invest 1,161 in eXp World Holdings on November 2, 2024 and sell it today you would lose (25.00) from holding eXp World Holdings or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Offerpad Solutions vs. eXp World Holdings
Performance |
| Timeline |
| Offerpad Solutions |
| eXp World Holdings |
Offerpad Solutions and EXp World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offerpad Solutions and EXp World
The main advantage of trading using opposite Offerpad Solutions and EXp World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offerpad Solutions 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.| Offerpad Solutions vs. Re Max Holding | Offerpad Solutions vs. Marcus Millichap | Offerpad Solutions vs. Frp Holdings Ord | Offerpad Solutions vs. Maui Land Pineapple |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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