Correlation Between CBRE Group and New York
Can any of the company-specific risk be diversified away by investing in both CBRE Group and New York 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 CBRE Group and New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBRE Group Class and New York City, you can compare the effects of market volatilities on CBRE Group and New York 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 CBRE Group with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBRE Group and New York.
Diversification Opportunities for CBRE Group and New York
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBRE and New is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding CBRE Group Class and New York City in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York City and CBRE Group 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 CBRE Group Class are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York City has no effect on the direction of CBRE Group i.e., CBRE Group and New York go up and down completely randomly.
Pair Corralation between CBRE Group and New York
Given the investment horizon of 90 days CBRE Group is expected to generate 1.15 times less return on investment than New York. But when comparing it to its historical volatility, CBRE Group Class is 1.49 times less risky than New York. It trades about 0.2 of its potential returns per unit of risk. New York City is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 845.00 in New York City on October 23, 2024 and sell it today you would earn a total of 74.00 from holding New York City or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBRE Group Class vs. New York City
Performance |
| Timeline |
| CBRE Group Class |
| New York City |
CBRE Group and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBRE Group and New York
The main advantage of trading using opposite CBRE Group and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBRE Group position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| CBRE Group vs. Cushman Wakefield plc | CBRE Group vs. Newmark Group | CBRE Group vs. Colliers International Group | CBRE Group vs. Marcus Millichap |
| New York vs. Frp Holdings Ord | New York vs. Marcus Millichap | New York vs. Anywhere Real Estate | New York vs. FirstService Corp |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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