Correlation Between Colliers International and WeWork
Can any of the company-specific risk be diversified away by investing in both Colliers International and WeWork 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 WeWork 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 WeWork Inc, you can compare the effects of market volatilities on Colliers International and WeWork 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 WeWork. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colliers International and WeWork.
Diversification Opportunities for Colliers International and WeWork
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Colliers and WeWork is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Colliers International Group and WeWork Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WeWork Inc 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 WeWork. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WeWork Inc has no effect on the direction of Colliers International i.e., Colliers International and WeWork go up and down completely randomly.
Pair Corralation between Colliers International and WeWork
If you would invest 11,142 in Colliers International Group on September 1, 2024 and sell it today you would earn a total of 4,221 from holding Colliers International Group or generate 37.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Colliers International Group vs. WeWork Inc
Performance |
| Timeline |
| Colliers International |
| WeWork Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Colliers International and WeWork Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colliers International and WeWork
The main advantage of trading using opposite Colliers International and WeWork positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colliers International position performs unexpectedly, WeWork 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 WeWork will offset losses from the drop in WeWork'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 |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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