Correlation Between Capital Properties and Newmark
Can any of the company-specific risk be diversified away by investing in both Capital Properties 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 Capital Properties and Newmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Properties and Newmark Group, you can compare the effects of market volatilities on Capital Properties 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 Capital Properties with a short position of Newmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Properties and Newmark.
Diversification Opportunities for Capital Properties and Newmark
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Capital and Newmark is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Capital Properties and Newmark Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmark Group and Capital Properties 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 Capital Properties 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 Capital Properties i.e., Capital Properties and Newmark go up and down completely randomly.
Pair Corralation between Capital Properties and Newmark
If you would invest 1,496 in Newmark Group on September 1, 2024 and sell it today you would earn a total of 52.00 from holding Newmark Group or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Capital Properties vs. Newmark Group
Performance |
| Timeline |
| Capital Properties |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Newmark Group |
Capital Properties and Newmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Properties and Newmark
The main advantage of trading using opposite Capital Properties and Newmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Properties 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.| Capital Properties vs. Community Bancorp | Capital Properties vs. F M Bank | Capital Properties vs. ENB Financial Corp | Capital Properties vs. CreditRiskMonitorCom |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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