Correlation Between Colliers International and Sumitomo Realty
Can any of the company-specific risk be diversified away by investing in both Colliers International and Sumitomo Realty 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 Sumitomo Realty 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 Sumitomo Realty Development, you can compare the effects of market volatilities on Colliers International and Sumitomo Realty 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 Sumitomo Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colliers International and Sumitomo Realty.
Diversification Opportunities for Colliers International and Sumitomo Realty
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Colliers and Sumitomo is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Colliers International Group and Sumitomo Realty Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo Realty Deve 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 Sumitomo Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo Realty Deve has no effect on the direction of Colliers International i.e., Colliers International and Sumitomo Realty go up and down completely randomly.
Pair Corralation between Colliers International and Sumitomo Realty
Given the investment horizon of 90 days Colliers International Group is expected to generate 0.64 times more return on investment than Sumitomo Realty. However, Colliers International Group is 1.56 times less risky than Sumitomo Realty. It trades about 0.07 of its potential returns per unit of risk. Sumitomo Realty Development is currently generating about 0.04 per unit of risk. If you would invest 10,047 in Colliers International Group on August 31, 2024 and sell it today you would earn a total of 5,316 from holding Colliers International Group or generate 52.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 55.61% |
| Values | Daily Returns |
Colliers International Group vs. Sumitomo Realty Development
Performance |
| Timeline |
| Colliers International |
| Sumitomo Realty Deve |
Colliers International and Sumitomo Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colliers International and Sumitomo Realty
The main advantage of trading using opposite Colliers International and Sumitomo Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colliers International position performs unexpectedly, Sumitomo Realty 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 Sumitomo Realty will offset losses from the drop in Sumitomo Realty'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 |
| Sumitomo Realty vs. Jones Lang LaSalle | Sumitomo Realty vs. Cushman Wakefield plc | Sumitomo Realty vs. Colliers International Group | Sumitomo Realty vs. CoStar Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
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