Correlation Between Colliers International and Harvest Global
Can any of the company-specific risk be diversified away by investing in both Colliers International and Harvest Global 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 Harvest Global 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 Harvest Global REIT, you can compare the effects of market volatilities on Colliers International and Harvest Global 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 Harvest Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colliers International and Harvest Global.
Diversification Opportunities for Colliers International and Harvest Global
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Colliers and Harvest is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Colliers International Group and Harvest Global REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Global REIT 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 Harvest Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Global REIT has no effect on the direction of Colliers International i.e., Colliers International and Harvest Global go up and down completely randomly.
Pair Corralation between Colliers International and Harvest Global
Assuming the 90 days trading horizon Colliers International Group is expected to generate 1.9 times more return on investment than Harvest Global. However, Colliers International is 1.9 times more volatile than Harvest Global REIT. It trades about 0.1 of its potential returns per unit of risk. Harvest Global REIT is currently generating about 0.08 per unit of risk. If you would invest 14,832 in Colliers International Group on September 3, 2024 and sell it today you would earn a total of 6,633 from holding Colliers International Group or generate 44.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Colliers International Group vs. Harvest Global REIT
Performance |
| Timeline |
| Colliers International |
| Harvest Global REIT |
Colliers International and Harvest Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colliers International and Harvest Global
The main advantage of trading using opposite Colliers International and Harvest Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colliers International position performs unexpectedly, Harvest Global 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 Harvest Global will offset losses from the drop in Harvest Global's long position.| Colliers International vs. FirstService Corp | Colliers International vs. Altus Group Limited | Colliers International vs. Ritchie Bros Auctioneers | Colliers International vs. Winpak |
| Harvest Global vs. Harvest Equal Weight | Harvest Global vs. Harvest Brand Leaders | Harvest Global vs. Energy Leaders Plus | Harvest Global vs. Harvest Tech Achievers |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges |