Correlation Between Re Max and Fathom Holdings
Can any of the company-specific risk be diversified away by investing in both Re Max and Fathom 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 Re Max and Fathom Holdings 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 Fathom Holdings, you can compare the effects of market volatilities on Re Max and Fathom 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 Re Max with a short position of Fathom Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Re Max and Fathom Holdings.
Diversification Opportunities for Re Max and Fathom Holdings
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between RMAX and Fathom is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Re Max Holding and Fathom Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fathom 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 Fathom Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fathom Holdings has no effect on the direction of Re Max i.e., Re Max and Fathom Holdings go up and down completely randomly.
Pair Corralation between Re Max and Fathom Holdings
Given the investment horizon of 90 days Re Max Holding is expected to generate 0.65 times more return on investment than Fathom Holdings. However, Re Max Holding is 1.54 times less risky than Fathom Holdings. It trades about -0.06 of its potential returns per unit of risk. Fathom Holdings is currently generating about -0.25 per unit of risk. If you would invest 1,225 in Re Max Holding on August 23, 2024 and sell it today you would lose (64.00) from holding Re Max Holding or give up 5.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Re Max Holding vs. Fathom Holdings
Performance |
| Timeline |
| Re Max Holding |
| Fathom Holdings |
Re Max and Fathom Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Re Max and Fathom Holdings
The main advantage of trading using opposite Re Max and Fathom Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Re Max position performs unexpectedly, Fathom 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 Fathom Holdings will offset losses from the drop in Fathom Holdings' 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 |
| Fathom Holdings vs. Transcontinental Realty Investors | Fathom Holdings vs. Anywhere Real Estate | Fathom Holdings vs. Re Max Holding | Fathom Holdings vs. New England Realty |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |