Correlation Between Opendoor Technologies and WeWork
Can any of the company-specific risk be diversified away by investing in both Opendoor Technologies 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 Opendoor Technologies and WeWork into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opendoor Technologies and WeWork Inc, you can compare the effects of market volatilities on Opendoor Technologies 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 Opendoor Technologies with a short position of WeWork. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opendoor Technologies and WeWork.
Diversification Opportunities for Opendoor Technologies and WeWork
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Opendoor and WeWork is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Opendoor Technologies and WeWork Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WeWork Inc and Opendoor Technologies 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 Opendoor Technologies 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 Opendoor Technologies i.e., Opendoor Technologies and WeWork go up and down completely randomly.
Pair Corralation between Opendoor Technologies and WeWork
If you would invest 26.00 in WeWork Inc on October 20, 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 | 5.0% |
| Values | Daily Returns |
Opendoor Technologies vs. WeWork Inc
Performance |
| Timeline |
| Opendoor Technologies |
| WeWork Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Opendoor Technologies and WeWork Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opendoor Technologies and WeWork
The main advantage of trading using opposite Opendoor Technologies and WeWork positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opendoor Technologies 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.| Opendoor Technologies vs. eXp World Holdings | Opendoor Technologies vs. Offerpad Solutions | Opendoor Technologies vs. Re Max Holding | Opendoor Technologies vs. Anywhere Real Estate |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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