Correlation Between BROOKFIELD REINSURANCE and Colliers International
Can any of the company-specific risk be diversified away by investing in both BROOKFIELD REINSURANCE 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 BROOKFIELD REINSURANCE and Colliers International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BROOKFIELD REINSURANCE LTD and Colliers International Group, you can compare the effects of market volatilities on BROOKFIELD REINSURANCE 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 BROOKFIELD REINSURANCE with a short position of Colliers International. Check out your portfolio center. Please also check ongoing floating volatility patterns of BROOKFIELD REINSURANCE and Colliers International.
Diversification Opportunities for BROOKFIELD REINSURANCE and Colliers International
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BROOKFIELD and Colliers is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding BROOKFIELD REINSURANCE LTD and Colliers International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colliers International and BROOKFIELD REINSURANCE 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 BROOKFIELD REINSURANCE LTD 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 BROOKFIELD REINSURANCE i.e., BROOKFIELD REINSURANCE and Colliers International go up and down completely randomly.
Pair Corralation between BROOKFIELD REINSURANCE and Colliers International
If you would invest 19,090 in Colliers International Group on September 3, 2024 and sell it today you would earn a total of 2,375 from holding Colliers International Group or generate 12.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 1.56% |
| Values | Daily Returns |
BROOKFIELD REINSURANCE LTD vs. Colliers International Group
Performance |
| Timeline |
| BROOKFIELD REINSURANCE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Colliers International |
BROOKFIELD REINSURANCE and Colliers International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BROOKFIELD REINSURANCE and Colliers International
The main advantage of trading using opposite BROOKFIELD REINSURANCE and Colliers International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BROOKFIELD REINSURANCE 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.The idea behind BROOKFIELD REINSURANCE LTD and Colliers International Group 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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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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