Correlation Between Doma Holdings and EXp World

Can any of the company-specific risk be diversified away by investing in both Doma Holdings 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 Doma Holdings and EXp World into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Doma Holdings and eXp World Holdings, you can compare the effects of market volatilities on Doma Holdings 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 Doma Holdings with a short position of EXp World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doma Holdings and EXp World.

Diversification Opportunities for Doma Holdings and EXp World

0.0

Correlation Coefficient

Doma Holdings  EXp World

Pay attention - limited upside

The 3 months correlation between Doma and EXp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Doma Holdings 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 Doma Holdings 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 Doma Holdings 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 Doma Holdings i.e., Doma Holdings and EXp World go up and down completely randomly.

Pair Corralation between Doma Holdings and EXp World

If you would invest (100.00) in Doma Holdings on December 26, 2024 and sell it today you would earn a total of  100.00  from holding Doma Holdings or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Doma Holdings  vs.  eXp World Holdings

Doma Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Doma Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Doma Holdings is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

eXp World Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days eXp World Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Doma Holdings and EXp World

The main advantage of trading using opposite Doma Holdings and EXp World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doma Holdings 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.

The idea behind Doma Holdings and eXp World Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.