Correlation Between Vonovia SE and Opendoor Technologies
Can any of the company-specific risk be diversified away by investing in both Vonovia SE and Opendoor Technologies 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 Vonovia SE and Opendoor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vonovia SE ADR and Opendoor Technologies, you can compare the effects of market volatilities on Vonovia SE and Opendoor Technologies 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 Vonovia SE with a short position of Opendoor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vonovia SE and Opendoor Technologies.
Diversification Opportunities for Vonovia SE and Opendoor Technologies
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vonovia and Opendoor is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Vonovia SE ADR and Opendoor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opendoor Technologies and Vonovia SE 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 Vonovia SE ADR are associated (or correlated) with Opendoor Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opendoor Technologies has no effect on the direction of Vonovia SE i.e., Vonovia SE and Opendoor Technologies go up and down completely randomly.
Pair Corralation between Vonovia SE and Opendoor Technologies
Assuming the 90 days horizon Vonovia SE is expected to generate 12.89 times less return on investment than Opendoor Technologies. But when comparing it to its historical volatility, Vonovia SE ADR is 3.26 times less risky than Opendoor Technologies. It trades about 0.06 of its potential returns per unit of risk. Opendoor Technologies is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 182.00 in Opendoor Technologies on September 2, 2024 and sell it today you would earn a total of 52.00 from holding Opendoor Technologies or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vonovia SE ADR vs. Opendoor Technologies
Performance |
| Timeline |
| Vonovia SE ADR |
| Opendoor Technologies |
Vonovia SE and Opendoor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vonovia SE and Opendoor Technologies
The main advantage of trading using opposite Vonovia SE and Opendoor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vonovia SE position performs unexpectedly, Opendoor Technologies 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 Opendoor Technologies will offset losses from the drop in Opendoor Technologies' long position.| Vonovia SE vs. Vonovia SE | Vonovia SE vs. HeidelbergCement AG ADR | Vonovia SE vs. Muenchener Rueckver Ges | Vonovia SE vs. Sun Hung Kai |
| Opendoor Technologies vs. Re Max Holding | Opendoor Technologies vs. Frp Holdings Ord | Opendoor Technologies vs. Maui Land Pineapple | Opendoor Technologies vs. Redfin 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |