Correlation Between Amazon CDR and Colliers International
Can any of the company-specific risk be diversified away by investing in both Amazon CDR and Colliers International 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 Amazon CDR and Colliers International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon CDR and Colliers International Group, you can compare the effects of market volatilities on Amazon CDR and Colliers International 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 Amazon CDR with a short position of Colliers International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon CDR and Colliers International.
Diversification Opportunities for Amazon CDR and Colliers International
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amazon and Colliers is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Amazon CDR and Colliers International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colliers International and Amazon CDR 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 Amazon CDR are associated (or correlated) with Colliers International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Colliers International has no effect on the direction of Amazon CDR i.e., Amazon CDR and Colliers International go up and down completely randomly.
Pair Corralation between Amazon CDR and Colliers International
Assuming the 90 days trading horizon Amazon CDR is expected to generate 2.25 times less return on investment than Colliers International. In addition to that, Amazon CDR is 1.22 times more volatile than Colliers International Group. It trades about 0.07 of its total potential returns per unit of risk. Colliers International Group is currently generating about 0.19 per unit of volatility. If you would invest 15,092 in Colliers International Group on September 2, 2024 and sell it today you would earn a total of 6,373 from holding Colliers International Group or generate 42.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amazon CDR vs. Colliers International Group
Performance |
| Timeline |
| Amazon CDR |
| Colliers International |
Amazon CDR and Colliers International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon CDR and Colliers International
The main advantage of trading using opposite Amazon CDR and Colliers International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon CDR position performs unexpectedly, Colliers International 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 Colliers International will offset losses from the drop in Colliers International's long position.| Amazon CDR vs. iShares Canadian HYBrid | Amazon CDR vs. Altagas Cum Red | Amazon CDR vs. European Residential Real | Amazon CDR vs. iShares Fundamental Hedged |
| Colliers International vs. FirstService Corp | Colliers International vs. Altus Group Limited | Colliers International vs. Ritchie Bros Auctioneers | Colliers International vs. Winpak |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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