Correlation Between Colliers International and Quarterhill
Can any of the company-specific risk be diversified away by investing in both Colliers International and Quarterhill 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 Quarterhill 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 Quarterhill, you can compare the effects of market volatilities on Colliers International and Quarterhill 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 Quarterhill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colliers International and Quarterhill.
Diversification Opportunities for Colliers International and Quarterhill
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Colliers and Quarterhill is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Colliers International Group and Quarterhill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quarterhill 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 Quarterhill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quarterhill has no effect on the direction of Colliers International i.e., Colliers International and Quarterhill go up and down completely randomly.
Pair Corralation between Colliers International and Quarterhill
Assuming the 90 days trading horizon Colliers International Group is expected to generate 0.63 times more return on investment than Quarterhill. However, Colliers International Group is 1.6 times less risky than Quarterhill. It trades about 0.18 of its potential returns per unit of risk. Quarterhill is currently generating about 0.02 per unit of risk. If you would invest 15,268 in Colliers International Group on August 29, 2024 and sell it today you would earn a total of 6,169 from holding Colliers International Group or generate 40.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Colliers International Group vs. Quarterhill
Performance |
| Timeline |
| Colliers International |
| Quarterhill |
Colliers International and Quarterhill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colliers International and Quarterhill
The main advantage of trading using opposite Colliers International and Quarterhill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colliers International position performs unexpectedly, Quarterhill 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 Quarterhill will offset losses from the drop in Quarterhill's long position.| Colliers International vs. FirstService Corp | Colliers International vs. Altus Group Limited | Colliers International vs. Ritchie Bros Auctioneers | Colliers International vs. Winpak |
| Quarterhill vs. Berkshire Hathaway CDR | Quarterhill vs. JPMorgan Chase Co | Quarterhill vs. Bank of America | Quarterhill vs. Alphabet Inc CDR |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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