Correlation Between Anywhere Real and WeWork

Can any of the company-specific risk be diversified away by investing in both Anywhere Real 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 Anywhere Real and WeWork 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 WeWork Inc, you can compare the effects of market volatilities on Anywhere Real 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 Anywhere Real with a short position of WeWork. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anywhere Real and WeWork.

Diversification Opportunities for Anywhere Real and WeWork

0.0

Correlation Coefficient

Anywhere Real  WeWork

Pay attention - limited upside

The 3 months correlation between Anywhere and WeWork is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Anywhere Real Estate and WeWork Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WeWork Inc 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 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 Anywhere Real i.e., Anywhere Real and WeWork go up and down completely randomly.

Pair Corralation between Anywhere Real and WeWork

If you would invest  572.00  in Anywhere Real Estate on February 3, 2025 and sell it today you would lose (193.00) from holding Anywhere Real Estate or give up 33.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Anywhere Real Estate  vs.  WeWork Inc

Anywhere Real Estate

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Anywhere Real Estate are ranked lower than 4 (%) 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.

WeWork Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days WeWork Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, WeWork is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Anywhere Real and WeWork

The main advantage of trading using opposite Anywhere Real and WeWork positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anywhere Real 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.

The idea behind Anywhere Real Estate and WeWork Inc 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .