Correlation Between New Concept and WeWork
Can any of the company-specific risk be diversified away by investing in both New Concept 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 New Concept and WeWork into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Concept Energy and WeWork Inc, you can compare the effects of market volatilities on New Concept 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 New Concept with a short position of WeWork. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Concept and WeWork.
Diversification Opportunities for New Concept and WeWork
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between New and WeWork is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding New Concept Energy and WeWork Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WeWork Inc and New Concept 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 New Concept Energy 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 New Concept i.e., New Concept and WeWork go up and down completely randomly.
Pair Corralation between New Concept and WeWork
If you would invest 119.00 in New Concept Energy on August 30, 2024 and sell it today you would earn a total of 0.00 from holding New Concept Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
New Concept Energy vs. WeWork Inc
Performance |
| Timeline |
| New Concept Energy |
| WeWork Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
New Concept and WeWork Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Concept and WeWork
The main advantage of trading using opposite New Concept and WeWork positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Concept 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.| New Concept vs. Marcus Millichap | New Concept vs. Frp Holdings Ord | New Concept vs. Maui Land Pineapple | New Concept vs. Hysan Development Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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