Correlation Between CCL Industries and Colliers International
Can any of the company-specific risk be diversified away by investing in both CCL Industries 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 CCL Industries and Colliers International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCL Industries and Colliers International Group, you can compare the effects of market volatilities on CCL Industries 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 CCL Industries with a short position of Colliers International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCL Industries and Colliers International.
Diversification Opportunities for CCL Industries and Colliers International
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CCL and Colliers is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding CCL Industries and Colliers International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colliers International and CCL Industries 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 CCL Industries 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 CCL Industries i.e., CCL Industries and Colliers International go up and down completely randomly.
Pair Corralation between CCL Industries and Colliers International
Assuming the 90 days trading horizon CCL Industries is expected to generate 0.86 times more return on investment than Colliers International. However, CCL Industries is 1.17 times less risky than Colliers International. It trades about -0.13 of its potential returns per unit of risk. Colliers International Group is currently generating about -0.33 per unit of risk. If you would invest 7,696 in CCL Industries on September 26, 2024 and sell it today you would lose (238.00) from holding CCL Industries or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCL Industries vs. Colliers International Group
Performance |
| Timeline |
| CCL Industries |
| Colliers International |
CCL Industries and Colliers International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCL Industries and Colliers International
The main advantage of trading using opposite CCL Industries and Colliers International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCL Industries 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.| CCL Industries vs. Stella Jones | CCL Industries vs. Gildan Activewear | CCL Industries vs. Toromont Industries | CCL Industries vs. Waste Connections |
| Colliers International vs. CCL Industries | Colliers International vs. Ritchie Bros Auctioneers | Colliers International vs. Stantec |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |