Correlation Between EXp World and Diego Pellicer

Can any of the company-specific risk be diversified away by investing in both EXp World and Diego Pellicer 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 Diego Pellicer 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 Diego Pellicer Worldwide, you can compare the effects of market volatilities on EXp World and Diego Pellicer 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 Diego Pellicer. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXp World and Diego Pellicer.

Diversification Opportunities for EXp World and Diego Pellicer

0.0

Correlation Coefficient

EXp World  Diego Pellicer

Pay attention - limited upside

The 3 months correlation between EXp and Diego is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding eXp World Holdings and Diego Pellicer Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diego Pellicer Worldwide 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 Diego Pellicer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diego Pellicer Worldwide has no effect on the direction of EXp World i.e., EXp World and Diego Pellicer go up and down completely randomly.

Pair Corralation between EXp World and Diego Pellicer

If you would invest  0.01  in Diego Pellicer Worldwide on October 12, 2024 and sell it today you would earn a total of  0.00  from holding Diego Pellicer Worldwide or generate 0.0% return on investment over 90 days.

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

eXp World Holdings  vs.  Diego Pellicer Worldwide

eXp World Holdings

Risk-Adjusted Performance

0 of 100

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 February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Diego Pellicer Worldwide

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Diego Pellicer Worldwide are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Diego Pellicer showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EXp World and Diego Pellicer

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

The idea behind eXp World Holdings and Diego Pellicer Worldwide 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.