Correlation Between Essential Properties and Opendoor Technologies
Can any of the company-specific risk be diversified away by investing in both Essential Properties and Opendoor Technologies 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 Essential Properties and Opendoor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Essential Properties Realty and Opendoor Technologies, you can compare the effects of market volatilities on Essential Properties and Opendoor Technologies 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 Essential Properties with a short position of Opendoor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Essential Properties and Opendoor Technologies.
Diversification Opportunities for Essential Properties and Opendoor Technologies
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Essential and Opendoor is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Essential Properties Realty and Opendoor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opendoor Technologies and Essential Properties 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 Essential Properties Realty are associated (or correlated) with Opendoor Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opendoor Technologies has no effect on the direction of Essential Properties i.e., Essential Properties and Opendoor Technologies go up and down completely randomly.
Pair Corralation between Essential Properties and Opendoor Technologies
Given the investment horizon of 90 days Essential Properties is expected to generate 18.77 times less return on investment than Opendoor Technologies. But when comparing it to its historical volatility, Essential Properties Realty is 12.03 times less risky than Opendoor Technologies. It trades about 0.06 of its potential returns per unit of risk. Opendoor Technologies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 509.00 in Opendoor Technologies on September 1, 2025 and sell it today you would earn a total of 261.00 from holding Opendoor Technologies or generate 51.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Essential Properties Realty vs. Opendoor Technologies
Performance |
| Timeline |
| Essential Properties |
| Opendoor Technologies |
Essential Properties and Opendoor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Essential Properties and Opendoor Technologies
The main advantage of trading using opposite Essential Properties and Opendoor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Essential Properties position performs unexpectedly, Opendoor Technologies 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 Opendoor Technologies will offset losses from the drop in Opendoor Technologies' long position.| Essential Properties vs. Gladstone Investment | Essential Properties vs. ANTA Sports Products | Essential Properties vs. Newron Sport | Essential Properties vs. Dicks Sporting Goods |
| Opendoor Technologies vs. Brookfield Office Properties | Opendoor Technologies vs. Hyatt Hotels | Opendoor Technologies vs. Summit Hotel Properties | Opendoor Technologies vs. Xenia Hotels Resorts |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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