Correlation Between Colliers International and Newmark
Can any of the company-specific risk be diversified away by investing in both Colliers International and Newmark 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 Newmark 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 Newmark Group, you can compare the effects of market volatilities on Colliers International and Newmark 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 Newmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colliers International and Newmark.
Diversification Opportunities for Colliers International and Newmark
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Colliers and Newmark is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Colliers International Group and Newmark Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmark Group 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 Newmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmark Group has no effect on the direction of Colliers International i.e., Colliers International and Newmark go up and down completely randomly.
Pair Corralation between Colliers International and Newmark
Given the investment horizon of 90 days Colliers International Group is expected to under-perform the Newmark. But the stock apears to be less risky and, when comparing its historical volatility, Colliers International Group is 1.28 times less risky than Newmark. The stock trades about -0.06 of its potential returns per unit of risk. The Newmark Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,454 in Newmark Group on August 24, 2024 and sell it today you would earn a total of 42.00 from holding Newmark Group or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Colliers International Group vs. Newmark Group
Performance |
| Timeline |
| Colliers International |
| Newmark Group |
Colliers International and Newmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colliers International and Newmark
The main advantage of trading using opposite Colliers International and Newmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colliers International position performs unexpectedly, Newmark 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 Newmark will offset losses from the drop in Newmark's long position.| Colliers International vs. Frp Holdings Ord | Colliers International vs. Marcus Millichap | Colliers International vs. Maui Land Pineapple | Colliers International vs. J W Mays |
| Newmark vs. Jones Lang LaSalle | Newmark vs. CBRE Group Class | Newmark vs. Colliers International Group | Newmark vs. Marcus Millichap |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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