Correlation Between EXp World and WeWork

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

By analyzing existing cross correlation between eXp World Holdings and WeWork Inc, you can compare the effects of market volatilities on EXp World 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 EXp World with a short position of WeWork. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXp World and WeWork.

Diversification Opportunities for EXp World and WeWork

0.0

Correlation Coefficient

EXp World  WeWork

Pay attention - limited upside

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

Pair Corralation between EXp World and WeWork

If you would invest (100.00) in WeWork Inc on December 26, 2024 and sell it today you would earn a total of  100.00  from holding WeWork Inc or generate -100.0% return on investment over 90 days.

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

eXp World Holdings  vs.  WeWork Inc

eXp World Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days eXp World Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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 EXp World and WeWork

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

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.