Correlation Between Colliers International and Genesis Land
Can any of the company-specific risk be diversified away by investing in both Colliers International and Genesis Land 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 Genesis Land 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 Genesis Land Development, you can compare the effects of market volatilities on Colliers International and Genesis Land 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 Genesis Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colliers International and Genesis Land.
Diversification Opportunities for Colliers International and Genesis Land
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Colliers and Genesis is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Colliers International Group and Genesis Land Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Land Development 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 Genesis Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Land Development has no effect on the direction of Colliers International i.e., Colliers International and Genesis Land go up and down completely randomly.
Pair Corralation between Colliers International and Genesis Land
Assuming the 90 days trading horizon Colliers International Group is expected to under-perform the Genesis Land. In addition to that, Colliers International is 1.55 times more volatile than Genesis Land Development. It trades about -0.38 of its total potential returns per unit of risk. Genesis Land Development is currently generating about -0.26 per unit of volatility. If you would invest 349.00 in Genesis Land Development on October 15, 2024 and sell it today you would lose (14.00) from holding Genesis Land Development or give up 4.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Colliers International Group vs. Genesis Land Development
Performance |
| Timeline |
| Colliers International |
| Genesis Land Development |
Colliers International and Genesis Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colliers International and Genesis Land
The main advantage of trading using opposite Colliers International and Genesis Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colliers International position performs unexpectedly, Genesis Land 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 Genesis Land will offset losses from the drop in Genesis Land's long position.| Colliers International vs. FirstService Corp | Colliers International vs. Altus Group Limited | Colliers International vs. Ritchie Bros Auctioneers | Colliers International vs. Winpak |
| Genesis Land vs. Melcor Developments | Genesis Land vs. Mainstreet Equity Corp | Genesis Land vs. Madison Pacific Properties | Genesis Land vs. Morguard |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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