Correlation Between CaliberCos and Perella Weinberg

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

By analyzing existing cross correlation between CaliberCos Class A and Perella Weinberg Partners, you can compare the effects of market volatilities on CaliberCos and Perella Weinberg 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 CaliberCos with a short position of Perella Weinberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of CaliberCos and Perella Weinberg.

Diversification Opportunities for CaliberCos and Perella Weinberg

-0.07

Correlation Coefficient

CaliberCos  Perella Weinberg

Good diversification

The 3 months correlation between CaliberCos and Perella is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding CaliberCos Class A and Perella Weinberg Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perella Weinberg Partners and CaliberCos 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 CaliberCos Class A are associated (or correlated) with Perella Weinberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perella Weinberg Partners has no effect on the direction of CaliberCos i.e., CaliberCos and Perella Weinberg go up and down completely randomly.

Pair Corralation between CaliberCos and Perella Weinberg

Considering the 90-day investment horizon CaliberCos Class A is expected to generate 2.05 times more return on investment than Perella Weinberg. However, CaliberCos is 2.05 times more volatile than Perella Weinberg Partners. It trades about 0.06 of its potential returns per unit of risk. Perella Weinberg Partners is currently generating about -0.1 per unit of risk. If you would invest  53.00  in CaliberCos Class A on December 22, 2024 and sell it today you would earn a total of  7.00  from holding CaliberCos Class A or generate 13.21% return on investment over 90 days.

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

CaliberCos Class A  vs.  Perella Weinberg Partners

CaliberCos Class A

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CaliberCos Class A are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, CaliberCos exhibited solid returns over the last few months and may actually be approaching a breakup point.

Perella Weinberg Partners

Risk-Adjusted Performance

Very Weak

Over the last 90 days Perella Weinberg Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with CaliberCos and Perella Weinberg

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

The idea behind CaliberCos Class A and Perella Weinberg Partners 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.