Correlation Between Colliers International and Opendoor Technologies
Can any of the company-specific risk be diversified away by investing in both Colliers International and Opendoor Technologies 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 Opendoor Technologies 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 Opendoor Technologies, you can compare the effects of market volatilities on Colliers International and Opendoor Technologies 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 Opendoor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colliers International and Opendoor Technologies.
Diversification Opportunities for Colliers International and Opendoor Technologies
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Colliers and Opendoor is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Colliers International Group and Opendoor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opendoor Technologies 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 Opendoor Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opendoor Technologies has no effect on the direction of Colliers International i.e., Colliers International and Opendoor Technologies go up and down completely randomly.
Pair Corralation between Colliers International and Opendoor Technologies
Given the investment horizon of 90 days Colliers International Group is expected to generate 0.35 times more return on investment than Opendoor Technologies. However, Colliers International Group is 2.84 times less risky than Opendoor Technologies. It trades about 0.02 of its potential returns per unit of risk. Opendoor Technologies is currently generating about -0.04 per unit of risk. If you would invest 14,058 in Colliers International Group on November 2, 2024 and sell it today you would earn a total of 261.00 from holding Colliers International Group or generate 1.86% 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. Opendoor Technologies
Performance |
| Timeline |
| Colliers International |
| Opendoor Technologies |
Colliers International and Opendoor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colliers International and Opendoor Technologies
The main advantage of trading using opposite Colliers International and Opendoor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colliers International position performs unexpectedly, Opendoor Technologies 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 Opendoor Technologies will offset losses from the drop in Opendoor Technologies' 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 |
| Opendoor Technologies vs. eXp World Holdings | Opendoor Technologies vs. Offerpad Solutions | Opendoor Technologies vs. Re Max Holding | Opendoor Technologies vs. Anywhere Real Estate |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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