Correlation Between Colliers International and New England
Can any of the company-specific risk be diversified away by investing in both Colliers International and New England 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 New England 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 New England Realty, you can compare the effects of market volatilities on Colliers International and New England 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 New England. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colliers International and New England.
Diversification Opportunities for Colliers International and New England
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Colliers and New is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Colliers International Group and New England Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New England Realty 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 New England. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New England Realty has no effect on the direction of Colliers International i.e., Colliers International and New England go up and down completely randomly.
Pair Corralation between Colliers International and New England
Given the investment horizon of 90 days Colliers International Group is expected to under-perform the New England. But the stock apears to be less risky and, when comparing its historical volatility, Colliers International Group is 1.55 times less risky than New England. The stock trades about -0.03 of its potential returns per unit of risk. The New England Realty is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 8,250 in New England Realty on August 28, 2024 and sell it today you would lose (1.00) from holding New England Realty or give up 0.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 36.36% |
| Values | Daily Returns |
Colliers International Group vs. New England Realty
Performance |
| Timeline |
| Colliers International |
| New England Realty |
Colliers International and New England Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colliers International and New England
The main advantage of trading using opposite Colliers International and New England positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colliers International position performs unexpectedly, New England 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 New England will offset losses from the drop in New England's long position.| Colliers International vs. Frp Holdings Ord | Colliers International vs. Marcus Millichap | Colliers International vs. Maui Land Pineapple | Colliers International vs. Jones Lang LaSalle |
| New England vs. The Intergroup | New England vs. Transcontinental Realty Investors | New England vs. American Realty Investors | New England vs. Gyrodyne Company of |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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