Correlation Between Leju Holdings and Anywhere Real

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

By analyzing existing cross correlation between Leju Holdings Limited and Anywhere Real Estate, you can compare the effects of market volatilities on Leju Holdings and Anywhere Real 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 Leju Holdings with a short position of Anywhere Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leju Holdings and Anywhere Real.

Diversification Opportunities for Leju Holdings and Anywhere Real

0.18

Correlation Coefficient

Leju Holdings  Anywhere Real

Average diversification

The 3 months correlation between Leju and Anywhere is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Leju Holdings Limited and Anywhere Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anywhere Real Estate and Leju 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 Leju Holdings Limited are associated (or correlated) with Anywhere Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anywhere Real Estate has no effect on the direction of Leju Holdings i.e., Leju Holdings and Anywhere Real go up and down completely randomly.

Pair Corralation between Leju Holdings and Anywhere Real

If you would invest  207.00  in Leju Holdings Limited on October 12, 2024 and sell it today you would earn a total of  0.00  from holding Leju Holdings Limited or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Leju Holdings Limited  vs.  Anywhere Real Estate

Leju Holdings Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Leju Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking indicators, Leju Holdings is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Anywhere Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anywhere Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Leju Holdings and Anywhere Real

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

The idea behind Leju Holdings Limited and Anywhere Real Estate 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.