Correlation Between Generation Income and EXp World

Can any of the company-specific risk be diversified away by investing in both Generation Income and EXp World 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 Generation Income and EXp World into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Generation Income Properties and eXp World Holdings, you can compare the effects of market volatilities on Generation Income and EXp World 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 Generation Income with a short position of EXp World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generation Income and EXp World.

Diversification Opportunities for Generation Income and EXp World

-0.62

Correlation Coefficient

Generation Income  EXp World

Excellent diversification

The 3 months correlation between Generation and EXp is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Generation Income Properties and eXp World Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eXp World Holdings and Generation Income 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 Generation Income Properties are associated (or correlated) with EXp World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eXp World Holdings has no effect on the direction of Generation Income i.e., Generation Income and EXp World go up and down completely randomly.

Pair Corralation between Generation Income and EXp World

Assuming the 90 days horizon Generation Income Properties is expected to generate 6.82 times more return on investment than EXp World. However, Generation Income is 6.82 times more volatile than eXp World Holdings. It trades about 0.08 of its potential returns per unit of risk. eXp World Holdings is currently generating about -0.09 per unit of risk. If you would invest  19.00  in Generation Income Properties on January 7, 2025 and sell it today you would lose (0.22) from holding Generation Income Properties or give up 1.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	57.14%
Values	Daily Returns

Generation Income Properties  vs.  eXp World Holdings

Generation Income

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Generation Income Properties are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Generation Income showed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Generation Income and EXp World

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

The idea behind Generation Income Properties and eXp World 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.