Correlation Between EXp World and Alta Global

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

Diversification Opportunities for EXp World and Alta Global

0.47

Correlation Coefficient

EXp World  Alta Global

Very weak diversification

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

Pair Corralation between EXp World and Alta Global

Given the investment horizon of 90 days EXp World is expected to generate 1.23 times less return on investment than Alta Global. But when comparing it to its historical volatility, eXp World Holdings is 1.88 times less risky than Alta Global. It trades about 0.11 of its potential returns per unit of risk. Alta Global Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  86.00  in Alta Global Group on May 1, 2025 and sell it today you would earn a total of  16.00  from holding Alta Global Group or generate 18.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

eXp World Holdings  vs.  Alta Global Group

eXp World Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in eXp World Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, EXp World demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Alta Global Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Alta Global Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent primary indicators, Alta Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EXp World and Alta Global

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

The idea behind eXp World Holdings and Alta Global Group 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..