Correlation Between Doma Holdings and WeWork
Can any of the company-specific risk be diversified away by investing in both Doma Holdings 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 Doma Holdings and WeWork into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doma Holdings and WeWork Inc, you can compare the effects of market volatilities on Doma Holdings 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 Doma Holdings with a short position of WeWork. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doma Holdings and WeWork.
Diversification Opportunities for Doma Holdings and WeWork
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Doma and WeWork is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Doma Holdings and WeWork Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WeWork Inc and Doma Holdings 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 Doma Holdings 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 Doma Holdings i.e., Doma Holdings and WeWork go up and down completely randomly.
Pair Corralation between Doma Holdings and WeWork
If you would invest 26.00 in WeWork Inc on August 31, 2024 and sell it today you would earn a total of 0.00 from holding WeWork Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doma Holdings vs. WeWork Inc
Performance |
| Timeline |
| Doma Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| WeWork Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Doma Holdings and WeWork Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doma Holdings and WeWork
The main advantage of trading using opposite Doma Holdings and WeWork positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doma Holdings 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.| Doma Holdings vs. Anywhere Real Estate | Doma Holdings vs. Opendoor Technologies | Doma Holdings vs. Re Max Holding | Doma Holdings vs. Redfin Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |