Correlation Between Cushman Wakefield and Capital Properties
Can any of the company-specific risk be diversified away by investing in both Cushman Wakefield and Capital Properties 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 Cushman Wakefield and Capital Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cushman Wakefield plc and Capital Properties, you can compare the effects of market volatilities on Cushman Wakefield and Capital Properties 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 Cushman Wakefield with a short position of Capital Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cushman Wakefield and Capital Properties.
Diversification Opportunities for Cushman Wakefield and Capital Properties
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cushman and Capital is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Cushman Wakefield plc and Capital Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Properties and Cushman Wakefield 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 Cushman Wakefield plc are associated (or correlated) with Capital Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Properties has no effect on the direction of Cushman Wakefield i.e., Cushman Wakefield and Capital Properties go up and down completely randomly.
Pair Corralation between Cushman Wakefield and Capital Properties
Considering the 90-day investment horizon Cushman Wakefield is expected to generate 3.03 times less return on investment than Capital Properties. In addition to that, Cushman Wakefield is 1.02 times more volatile than Capital Properties. It trades about 0.06 of its total potential returns per unit of risk. Capital Properties is currently generating about 0.2 per unit of volatility. If you would invest 1,080 in Capital Properties on August 31, 2024 and sell it today you would earn a total of 187.00 from holding Capital Properties or generate 17.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 8.56% |
| Values | Daily Returns |
Cushman Wakefield plc vs. Capital Properties
Performance |
| Timeline |
| Cushman Wakefield plc |
| Capital Properties |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cushman Wakefield and Capital Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cushman Wakefield and Capital Properties
The main advantage of trading using opposite Cushman Wakefield and Capital Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cushman Wakefield position performs unexpectedly, Capital Properties 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 Capital Properties will offset losses from the drop in Capital Properties' long position.| Cushman Wakefield vs. CBRE Group Class | Cushman Wakefield vs. Newmark Group | Cushman Wakefield vs. Colliers International Group | Cushman Wakefield vs. Marcus Millichap |
| Capital Properties vs. Community Bancorp | Capital Properties vs. F M Bank | Capital Properties vs. ENB Financial Corp | Capital Properties vs. CreditRiskMonitorCom |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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