Correlation Between Anywhere Real and Newmark

Can any of the company-specific risk be diversified away by investing in both Anywhere Real and Newmark 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 Anywhere Real and Newmark into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Anywhere Real Estate and Newmark Group, you can compare the effects of market volatilities on Anywhere Real and Newmark 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 Anywhere Real with a short position of Newmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anywhere Real and Newmark.

Diversification Opportunities for Anywhere Real and Newmark

0.87

Correlation Coefficient

Anywhere Real  Newmark

Very poor diversification

The 3 months correlation between Anywhere and Newmark is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Anywhere Real Estate and Newmark Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmark Group and Anywhere Real 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 Anywhere Real Estate are associated (or correlated) with Newmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmark Group has no effect on the direction of Anywhere Real i.e., Anywhere Real and Newmark go up and down completely randomly.

Pair Corralation between Anywhere Real and Newmark

Given the investment horizon of 90 days Anywhere Real Estate is expected to generate 2.26 times more return on investment than Newmark. However, Anywhere Real is 2.26 times more volatile than Newmark Group. It trades about 0.25 of its potential returns per unit of risk. Newmark Group is currently generating about 0.48 per unit of risk. If you would invest  364.00  in Anywhere Real Estate on May 5, 2025 and sell it today you would earn a total of  85.00  from holding Anywhere Real Estate or generate 23.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Anywhere Real Estate  vs.  Newmark Group

Anywhere Real Estate

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Anywhere Real Estate are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Anywhere Real unveiled solid returns over the last few months and may actually be approaching a breakup point.

Newmark Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Newmark Group are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Newmark disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Anywhere Real and Newmark

The main advantage of trading using opposite Anywhere Real and Newmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anywhere Real position performs unexpectedly, Newmark 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 Newmark will offset losses from the drop in Newmark's long position.

The idea behind Anywhere Real Estate and Newmark Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.