Correlation Between EXp World and XChange TECINC

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

Diversification Opportunities for EXp World and XChange TECINC

-0.42

Correlation Coefficient

EXp World  XChange TECINC

Very good diversification

The 3 months correlation between EXp and XChange is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding eXp World Holdings and XChange TECINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XChange TECINC 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 XChange TECINC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XChange TECINC has no effect on the direction of EXp World i.e., EXp World and XChange TECINC go up and down completely randomly.

Pair Corralation between EXp World and XChange TECINC

Given the investment horizon of 90 days eXp World Holdings is expected to generate 0.52 times more return on investment than XChange TECINC. However, eXp World Holdings is 1.91 times less risky than XChange TECINC. It trades about 0.09 of its potential returns per unit of risk. XChange TECINC is currently generating about -0.12 per unit of risk. If you would invest  924.00  in eXp World Holdings on May 2, 2025 and sell it today you would earn a total of  160.00  from holding eXp World Holdings or generate 17.32% 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.  XChange TECINC

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 7 (%) 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.

XChange TECINC

Risk-Adjusted Performance

Very Weak

Over the last 90 days XChange TECINC 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 technical indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with EXp World and XChange TECINC

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

The idea behind eXp World Holdings and XChange TECINC 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 Global Correlations module to find global opportunities by holding instruments from different markets.