Correlation Between Workiva and Getaround

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

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

Diversification Opportunities for Workiva and Getaround

-0.91

Correlation Coefficient

Workiva  Getaround

Pay attention - limited upside

The 3 months correlation between Workiva and Getaround is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Workiva and Getaround in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getaround and Workiva 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 Workiva are associated (or correlated) with Getaround. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getaround has no effect on the direction of Workiva i.e., Workiva and Getaround go up and down completely randomly.

Pair Corralation between Workiva and Getaround

If you would invest  9,837  in Workiva on September 24, 2024 and sell it today you would earn a total of  1,641  from holding Workiva or generate 16.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	4.76%
Values	Daily Returns

Workiva  vs.  Getaround

Workiva

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Workiva are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile forward-looking signals, Workiva disclosed solid returns over the last few months and may actually be approaching a breakup point.

Getaround

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Getaround has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Getaround is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Workiva and Getaround

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

The idea behind Workiva and Getaround 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.