Correlation Between EXp World and Ke Holdings

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

Diversification Opportunities for EXp World and Ke Holdings

-0.47

Correlation Coefficient

EXp World  Ke Holdings

Very good diversification

The 3 months correlation between EXp and BEKE is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding eXp World Holdings and Ke Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ke Holdings 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 Ke Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ke Holdings has no effect on the direction of EXp World i.e., EXp World and Ke Holdings go up and down completely randomly.

Pair Corralation between EXp World and Ke Holdings

Given the investment horizon of 90 days eXp World Holdings is expected to under-perform the Ke Holdings. In addition to that, EXp World is 1.02 times more volatile than Ke Holdings. It trades about 0.0 of its total potential returns per unit of risk. Ke Holdings is currently generating about 0.04 per unit of volatility. If you would invest  1,515  in Ke Holdings on January 24, 2025 and sell it today you would earn a total of  595.00  from holding Ke Holdings or generate 39.27% return on investment over 90 days.

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

eXp World Holdings  vs.  Ke Holdings

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

Ke Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ke Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent forward-looking signals, Ke Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EXp World and Ke Holdings

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

The idea behind eXp World Holdings and Ke Holdings 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.