Correlation Between EXp World and Maui Land

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

Diversification Opportunities for EXp World and Maui Land

0.91

Correlation Coefficient

EXp World  Maui Land

Almost no diversification

The 3 months correlation between EXp and Maui is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding eXp World Holdings and Maui Land Pineapple in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maui Land Pineapple 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 Maui Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maui Land Pineapple has no effect on the direction of EXp World i.e., EXp World and Maui Land go up and down completely randomly.

Pair Corralation between EXp World and Maui Land

Given the investment horizon of 90 days eXp World Holdings is expected to under-perform the Maui Land. In addition to that, EXp World is 1.36 times more volatile than Maui Land Pineapple. It trades about -0.14 of its total potential returns per unit of risk. Maui Land Pineapple is currently generating about -0.14 per unit of volatility. If you would invest  2,425  in Maui Land Pineapple on November 28, 2024 and sell it today you would lose (430.00) from holding Maui Land Pineapple or give up 17.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

eXp World Holdings  vs.  Maui Land Pineapple

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

Maui Land Pineapple

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maui Land Pineapple has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with EXp World and Maui Land

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

The idea behind eXp World Holdings and Maui Land Pineapple 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.