Sirwin
Sirwin
IYR etf daily chart, red, with local RE indices for 2020

finX - AirBnB IPO 🏘 and RE Custom Indices

By artum-x | Custom finX | 5 Nov 2020


Let's search Airbnb on Publish0x: https://www.publish0x.com/search?q=Airbnb

You get lots of articles and variety of opinions about it.

The things that interest me ARE:

  • Airbnb's upcoming IPO
  • Opportunity to include it into the fin. indices of local RE

 

The beauty of real estate IS in its local nature.

Not only it means that $1m in LA or NY has lower value than in RE market of Chicago:

in Chicago you buy a house for $1m in upscale neighborhood, can grow your kids nicely and nurture loving relationship with your darling.

Then you may move to the city of your dreams (or not). For the same $1m you won't buy a comparable property in LA, NY.

 

It also means ... applying local economic indicator(s) to national or global indices.

Let's bring here the familiar pair trading strategy introduced in our 1st article:

 

e4daad3dadd452ece9198c0297de02804a57cc7ee73ff3813f1b96153d882060.jpeg 

The strategy started on 01.02.2020 & it generated P/L numbers above based on the national RE ETF IYR: 2nd column on right in $.

Multiply the P/L*locREindr and you have local reX based on IYR, 

where locREindr - local Real Estate Indicator.

There are different ways to define it. We'll discuss them in our future articles including renown Case-Schiller Home Price indices.

 

For now, let's say we have local RE Indicators as follows:

MPreIndr = 99.7%, SMreIndr = 102.76%, SACreIndr = 104%, STANFreIndr=102.69% compared to IYRreIndr = 100%

 

Can you do the math? Can you convert them to ETH, BTC and your fav. Cc?

101.372 * 99.7% = ?

101,372 * 102.76% = ?

101,372 * 104% = ?

101,372 * 102.69 = ?

 

Below are the charts of the IYR ETF daily values impacted by local RE indicators:

463e45ce1e55b46ac62db448cb8868015c542e66df11bb0d7094996a4448fbe7.png

We just Wait and See how our index will be impacted by upcoming values of AirBnB.

 

And I have read some moving articles, heard some innovative speeches from the local municipalities about the need 'to control' AirBnB.

Welcome to the new world of tools to impact the local RE. We look forward to make them Cc based.

 

Enjoy the ride following us! We'll seek to advance the finX related to RE.

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artum-x
artum-x

I develop custom finXs - financial indices on Y!F My Platform, spreadsheets & in my dreams, subconsciously when I sleep😴 With Fed & major Central banks taking on CBDC & all cryptocurrency advances, finXs is a playground 4 everyone. Former NCTM member😍


Custom finX
Custom finX

Few months ago @EricBalchunas on Twitter asked: Who will be next to join BlackRock & Vgrd in the $1T Club for ETF assets? My answer? https://twitter.com/bi1te/status/1146282224406474754 ... China, Germany leading the pack. 📈📉🔢 Custom financial indices - excellent way to not only develop robust fin. ai's but also learn hands-on basics for math students of all ages. The @NCTM is doing its part, @IndexIndustry keeps the light bright. This blog intends 2 share challenges & advances along the way. Enjoy 🤣

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