Correlation Between Colliers International and BROOKFIELD REINSURANCE
Can any of the company-specific risk be diversified away by investing in both Colliers International and BROOKFIELD REINSURANCE 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 Colliers International and BROOKFIELD REINSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Colliers International Group and BROOKFIELD REINSURANCE LTD, you can compare the effects of market volatilities on Colliers International and BROOKFIELD REINSURANCE 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 Colliers International with a short position of BROOKFIELD REINSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colliers International and BROOKFIELD REINSURANCE.
Diversification Opportunities for Colliers International and BROOKFIELD REINSURANCE
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Colliers and BROOKFIELD is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Colliers International Group and BROOKFIELD REINSURANCE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BROOKFIELD REINSURANCE and Colliers International 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 Colliers International Group are associated (or correlated) with BROOKFIELD REINSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BROOKFIELD REINSURANCE has no effect on the direction of Colliers International i.e., Colliers International and BROOKFIELD REINSURANCE go up and down completely randomly.
Pair Corralation between Colliers International and BROOKFIELD REINSURANCE
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 |
Colliers International Group vs. BROOKFIELD REINSURANCE LTD
Performance |
| Timeline |
| Colliers International |
| BROOKFIELD REINSURANCE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Colliers International and BROOKFIELD REINSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colliers International and BROOKFIELD REINSURANCE
The main advantage of trading using opposite Colliers International and BROOKFIELD REINSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colliers International position performs unexpectedly, BROOKFIELD REINSURANCE 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 BROOKFIELD REINSURANCE will offset losses from the drop in BROOKFIELD REINSURANCE's long position.| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |