Correlation Between 58 and United Homes
Can any of the company-specific risk be diversified away by investing in both 58 and United Homes 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 58 and United Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 58 Inc and United Homes Group, you can compare the effects of market volatilities on 58 and United Homes 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 58 with a short position of United Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of 58 and United Homes.
Diversification Opportunities for 58 and United Homes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 58 and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 58 Inc and United Homes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Homes Group and 58 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 58 Inc are associated (or correlated) with United Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Homes Group has no effect on the direction of 58 i.e., 58 and United Homes go up and down completely randomly.
Pair Corralation between 58 and United Homes
If you would invest (100.00) in 58 Inc on February 5, 2024 and sell it today you would earn a total of 100.00 from holding 58 Inc or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
58 Inc vs. United Homes Group
Performance |
Timeline |
58 Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Homes Group |
58 and United Homes Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 58 and United Homes
The main advantage of trading using opposite 58 and United Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 58 position performs unexpectedly, United Homes 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 United Homes will offset losses from the drop in United Homes' long position.58 vs. Cedar Realty Trust | 58 vs. AerSale Corp | 58 vs. Stepstone Group | 58 vs. Corporacion America Airports |
United Homes vs. Diageo PLC ADR | United Homes vs. Mangazeya Mining | United Homes vs. US GoldMining Common | United Homes vs. Molson Coors Brewing |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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