Correlation Between EXp World and WeWork
Can any of the company-specific risk be diversified away by investing in both EXp World 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 EXp World and WeWork into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eXp World Holdings and WeWork Inc, you can compare the effects of market volatilities on EXp World 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 EXp World with a short position of WeWork. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXp World and WeWork.
Diversification Opportunities for EXp World and WeWork
Modest diversification
The 3 months correlation between EXp and WeWork is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding eXp World Holdings and WeWork Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WeWork Inc and EXp World 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 eXp World 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 EXp World i.e., EXp World and WeWork go up and down completely randomly.
Pair Corralation between EXp World and WeWork
If you would invest 1,161 in eXp World Holdings on November 2, 2024 and sell it today you would lose (25.00) from holding eXp World Holdings or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.97% |
| Values | Daily Returns |
eXp World Holdings vs. WeWork Inc
Performance |
| Timeline |
| eXp World Holdings |
| WeWork Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EXp World and WeWork Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXp World and WeWork
The main advantage of trading using opposite EXp World and WeWork positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXp World 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.| EXp World vs. Re Max Holding | EXp World vs. Fathom Holdings | EXp World vs. Anywhere Real Estate | EXp World vs. RMR Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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