Correlation Between Rafael Holdings and Opendoor Technologies
Can any of the company-specific risk be diversified away by investing in both Rafael Holdings and Opendoor Technologies 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 Rafael Holdings and Opendoor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rafael Holdings Class and Opendoor Technologies, you can compare the effects of market volatilities on Rafael Holdings and Opendoor Technologies 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 Rafael Holdings with a short position of Opendoor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rafael Holdings and Opendoor Technologies.
Diversification Opportunities for Rafael Holdings and Opendoor Technologies
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rafael and Opendoor is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Rafael Holdings Class and Opendoor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opendoor Technologies and Rafael 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 Rafael Holdings Class are associated (or correlated) with Opendoor Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opendoor Technologies has no effect on the direction of Rafael Holdings i.e., Rafael Holdings and Opendoor Technologies go up and down completely randomly.
Pair Corralation between Rafael Holdings and Opendoor Technologies
Considering the 90-day investment horizon Rafael Holdings Class is expected to generate 0.9 times more return on investment than Opendoor Technologies. However, Rafael Holdings Class is 1.11 times less risky than Opendoor Technologies. It trades about 0.06 of its potential returns per unit of risk. Opendoor Technologies is currently generating about -0.21 per unit of risk. If you would invest 176.00 in Rafael Holdings Class on December 3, 2024 and sell it today you would earn a total of 19.00 from holding Rafael Holdings Class or generate 10.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Rafael Holdings Class vs. Opendoor Technologies
Performance |
Timeline |
Rafael Holdings Class |
Opendoor Technologies |
Rafael Holdings and Opendoor Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Rafael Holdings and Opendoor Technologies
The main advantage of trading using opposite Rafael Holdings and Opendoor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rafael Holdings position performs unexpectedly, Opendoor Technologies 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 Opendoor Technologies will offset losses from the drop in Opendoor Technologies' long position.Rafael Holdings vs. Fangdd Network Group | Rafael Holdings vs. IRSA Inversiones Y | Rafael Holdings vs. J W Mays | Rafael Holdings vs. RMR Group |
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Check out your portfolio center.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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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