Correlation Between Southcorp Capital and Leju Holdings
Can any of the company-specific risk be diversified away by investing in both Southcorp Capital 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 Southcorp Capital and Leju Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southcorp Capital and Leju Holdings Limited, you can compare the effects of market volatilities on Southcorp Capital 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 Southcorp Capital with a short position of Leju Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southcorp Capital and Leju Holdings.
Diversification Opportunities for Southcorp Capital and Leju Holdings
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Southcorp and Leju is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Southcorp Capital 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 Southcorp Capital 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 Southcorp Capital 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 Southcorp Capital i.e., Southcorp Capital and Leju Holdings go up and down completely randomly.
Pair Corralation between Southcorp Capital and Leju Holdings
If you would invest 0.16 in Southcorp Capital on August 28, 2024 and sell it today you would earn a total of 0.54 from holding Southcorp Capital or generate 337.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.48% |
| Values | Daily Returns |
Southcorp Capital vs. Leju Holdings Limited
Performance |
| Timeline |
| Southcorp Capital |
| Leju Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Southcorp Capital and Leju Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southcorp Capital and Leju Holdings
The main advantage of trading using opposite Southcorp Capital and Leju Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southcorp Capital 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.| Southcorp Capital vs. Fangdd Network Group | Southcorp Capital vs. MDJM | Southcorp Capital vs. Frp Holdings Ord | Southcorp Capital vs. Marcus Millichap |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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