Correlation Between EXp World and Brookfield Property

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

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

Diversification Opportunities for EXp World and Brookfield Property

-0.27

Correlation Coefficient

EXp World  Brookfield Property

Very good diversification

The 3 months correlation between EXp and Brookfield is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding eXp World Holdings and Brookfield Property Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Property and EXp World 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 eXp World Holdings are associated (or correlated) with Brookfield Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Property has no effect on the direction of EXp World i.e., EXp World and Brookfield Property go up and down completely randomly.

Pair Corralation between EXp World and Brookfield Property

Given the investment horizon of 90 days eXp World Holdings is expected to under-perform the Brookfield Property. In addition to that, EXp World is 1.69 times more volatile than Brookfield Property Partners. It trades about -0.15 of its total potential returns per unit of risk. Brookfield Property Partners is currently generating about 0.05 per unit of volatility. If you would invest  1,472  in Brookfield Property Partners on December 20, 2024 and sell it today you would earn a total of  55.00  from holding Brookfield Property Partners or generate 3.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

eXp World Holdings  vs.  Brookfield Property Partners

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.

Brookfield Property

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Brookfield Property Partners are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Brookfield Property is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with EXp World and Brookfield Property

The main advantage of trading using opposite EXp World and Brookfield Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXp World position performs unexpectedly, Brookfield Property 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 Brookfield Property will offset losses from the drop in Brookfield Property's long position.

The idea behind eXp World Holdings and Brookfield Property Partners 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.