Correlation Between CBRE Group and WeWork
Can any of the company-specific risk be diversified away by investing in both CBRE Group and WeWork 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 CBRE Group and WeWork into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBRE Group Class and WeWork Inc, you can compare the effects of market volatilities on CBRE Group and WeWork 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 CBRE Group with a short position of WeWork. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBRE Group and WeWork.
Diversification Opportunities for CBRE Group and WeWork
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBRE and WeWork is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding CBRE Group Class and WeWork Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WeWork Inc and CBRE Group 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 CBRE Group Class are associated (or correlated) with WeWork. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WeWork Inc has no effect on the direction of CBRE Group i.e., CBRE Group and WeWork go up and down completely randomly.
Pair Corralation between CBRE Group and WeWork
If you would invest 11,566 in CBRE Group Class on November 2, 2024 and sell it today you would earn a total of 2,899 from holding CBRE Group Class or generate 25.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.97% |
| Values | Daily Returns |
CBRE Group Class vs. WeWork Inc
Performance |
| Timeline |
| CBRE Group Class |
| WeWork Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CBRE Group and WeWork Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBRE Group and WeWork
The main advantage of trading using opposite CBRE Group and WeWork positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBRE Group position performs unexpectedly, WeWork 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 WeWork will offset losses from the drop in WeWork's long position.| CBRE Group vs. Cushman Wakefield plc | CBRE Group vs. Newmark Group | CBRE Group vs. Colliers International Group | CBRE Group vs. Marcus Millichap |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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