Correlation Between CBRE Group and Offerpad Solutions
Can any of the company-specific risk be diversified away by investing in both CBRE Group and Offerpad Solutions 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 Offerpad Solutions 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 Offerpad Solutions, you can compare the effects of market volatilities on CBRE Group and Offerpad Solutions 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 Offerpad Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBRE Group and Offerpad Solutions.
Diversification Opportunities for CBRE Group and Offerpad Solutions
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CBRE and Offerpad is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding CBRE Group Class and Offerpad Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Offerpad Solutions 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 Offerpad Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Offerpad Solutions has no effect on the direction of CBRE Group i.e., CBRE Group and Offerpad Solutions go up and down completely randomly.
Pair Corralation between CBRE Group and Offerpad Solutions
Given the investment horizon of 90 days CBRE Group Class is expected to generate 0.31 times more return on investment than Offerpad Solutions. However, CBRE Group Class is 3.18 times less risky than Offerpad Solutions. It trades about 0.23 of its potential returns per unit of risk. Offerpad Solutions is currently generating about 0.03 per unit of risk. If you would invest 8,659 in CBRE Group Class on September 1, 2024 and sell it today you would earn a total of 5,340 from holding CBRE Group Class or generate 61.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBRE Group Class vs. Offerpad Solutions
Performance |
| Timeline |
| CBRE Group Class |
| Offerpad Solutions |
CBRE Group and Offerpad Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBRE Group and Offerpad Solutions
The main advantage of trading using opposite CBRE Group and Offerpad Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBRE Group position performs unexpectedly, Offerpad Solutions 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 Offerpad Solutions will offset losses from the drop in Offerpad Solutions' long position.| CBRE Group vs. Cushman Wakefield plc | CBRE Group vs. Newmark Group | CBRE Group vs. Colliers International Group | CBRE Group vs. Marcus Millichap |
| Offerpad Solutions vs. Re Max Holding | Offerpad Solutions vs. Marcus Millichap | Offerpad Solutions vs. Frp Holdings Ord | Offerpad Solutions vs. Maui Land Pineapple |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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