Correlation Between Re Max and EXp World
Can any of the company-specific risk be diversified away by investing in both Re Max 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 Re Max and EXp World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Re Max Holding and eXp World Holdings, you can compare the effects of market volatilities on Re Max 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 Re Max with a short position of EXp World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Re Max and EXp World.
Diversification Opportunities for Re Max and EXp World
Almost no diversification
The 3 months correlation between RMAX and EXp is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Re Max Holding 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 Re Max 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 Re Max Holding 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 Re Max i.e., Re Max and EXp World go up and down completely randomly.
Pair Corralation between Re Max and EXp World
Given the investment horizon of 90 days Re Max Holding is expected to generate 0.91 times more return on investment than EXp World. However, Re Max Holding is 1.1 times less risky than EXp World. It trades about 0.05 of its potential returns per unit of risk. eXp World Holdings is currently generating about -0.06 per unit of risk. If you would invest 999.00 in Re Max Holding on November 18, 2024 and sell it today you would earn a total of 14.00 from holding Re Max Holding or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Re Max Holding vs. eXp World Holdings
Performance |
| Timeline |
| Re Max Holding |
| eXp World Holdings |
Re Max and EXp World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Re Max and EXp World
The main advantage of trading using opposite Re Max and EXp World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Re Max 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.| Re Max vs. Marcus Millichap | Re Max vs. Frp Holdings Ord | Re Max vs. Maui Land Pineapple | Re Max vs. Transcontinental Realty Investors |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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