Correlation Between Offerpad Solutions and J W
Can any of the company-specific risk be diversified away by investing in both Offerpad Solutions and J W 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 Offerpad Solutions and J W into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Offerpad Solutions and J W Mays, you can compare the effects of market volatilities on Offerpad Solutions and J W 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 Offerpad Solutions with a short position of J W. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offerpad Solutions and J W.
Diversification Opportunities for Offerpad Solutions and J W
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Offerpad and MAYS is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Offerpad Solutions and J W Mays in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J W Mays and Offerpad Solutions 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 Offerpad Solutions are associated (or correlated) with J W. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J W Mays has no effect on the direction of Offerpad Solutions i.e., Offerpad Solutions and J W go up and down completely randomly.
Pair Corralation between Offerpad Solutions and J W
Given the investment horizon of 90 days Offerpad Solutions is expected to generate 13.68 times more return on investment than J W. However, Offerpad Solutions is 13.68 times more volatile than J W Mays. It trades about 0.09 of its potential returns per unit of risk. J W Mays is currently generating about 0.09 per unit of risk. If you would invest 147.00 in Offerpad Solutions on August 16, 2025 and sell it today you would earn a total of 44.00 from holding Offerpad Solutions or generate 29.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 15.87% |
| Values | Daily Returns |
Offerpad Solutions vs. J W Mays
Performance |
| Timeline |
| Offerpad Solutions |
| J W Mays |
Risk-Adjusted Performance
Fair
Weak | Strong |
Offerpad Solutions and J W Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offerpad Solutions and J W
The main advantage of trading using opposite Offerpad Solutions and J W positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offerpad Solutions position performs unexpectedly, J W 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 J W will offset losses from the drop in J W's long position.| Offerpad Solutions vs. Rafael Holdings, | Offerpad Solutions vs. Fathom Holdings | Offerpad Solutions vs. AFC Gamma | Offerpad Solutions vs. Star Holdings |
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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