Correlation Between EXp World and Hydromer
Can any of the company-specific risk be diversified away by investing in both EXp World and Hydromer 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 Hydromer 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 Hydromer, you can compare the effects of market volatilities on EXp World and Hydromer 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 Hydromer. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXp World and Hydromer.
Diversification Opportunities for EXp World and Hydromer
Pay attention - limited upside
The 3 months correlation between EXp and Hydromer is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding eXp World Holdings and Hydromer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hydromer 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 Hydromer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hydromer has no effect on the direction of EXp World i.e., EXp World and Hydromer go up and down completely randomly.
Pair Corralation between EXp World and Hydromer
Given the investment horizon of 90 days eXp World Holdings is expected to under-perform the Hydromer. But the stock apears to be less risky and, when comparing its historical volatility, eXp World Holdings is 2.43 times less risky than Hydromer. The stock trades about 0.0 of its potential returns per unit of risk. The Hydromer is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 40.00 in Hydromer on January 24, 2024 and sell it today you would lose (17.00) from holding Hydromer or give up 42.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
eXp World Holdings vs. Hydromer
Performance |
| Timeline |
| eXp World Holdings |
| Hydromer |
EXp World and Hydromer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXp World and Hydromer
The main advantage of trading using opposite EXp World and Hydromer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXp World position performs unexpectedly, Hydromer 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 Hydromer will offset losses from the drop in Hydromer's long position.| EXp World vs. Investcorp Credit Management | EXp World vs. Medalist Diversified Reit | EXp World vs. Mingzhu Logistics HoldingsLtd | EXp World vs. Aquagold International |
| Hydromer vs. Biotron Limited | Hydromer vs. biOasis Technologies | Hydromer vs. Covalon Technologies | Hydromer vs. Mosaic Immunoengineering |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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