Correlation Between Cushman Wakefield and Greentown Management
Can any of the company-specific risk be diversified away by investing in both Cushman Wakefield and Greentown Management 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 Greentown Management 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 Greentown Management Holdings, you can compare the effects of market volatilities on Cushman Wakefield and Greentown Management 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 Greentown Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cushman Wakefield and Greentown Management.
Diversification Opportunities for Cushman Wakefield and Greentown Management
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cushman and Greentown is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cushman Wakefield plc and Greentown Management Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greentown Management 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 Greentown Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greentown Management has no effect on the direction of Cushman Wakefield i.e., Cushman Wakefield and Greentown Management go up and down completely randomly.
Pair Corralation between Cushman Wakefield and Greentown Management
Considering the 90-day investment horizon Cushman Wakefield is expected to generate 1.53 times less return on investment than Greentown Management. But when comparing it to its historical volatility, Cushman Wakefield plc is 2.08 times less risky than Greentown Management. It trades about 0.07 of its potential returns per unit of risk. Greentown Management Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 34.00 in Greentown Management Holdings on November 3, 2024 and sell it today you would earn a total of 16.00 from holding Greentown Management Holdings or generate 47.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Cushman Wakefield plc vs. Greentown Management Holdings
Performance |
| Timeline |
| Cushman Wakefield plc |
| Greentown Management |
Cushman Wakefield and Greentown Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cushman Wakefield and Greentown Management
The main advantage of trading using opposite Cushman Wakefield and Greentown Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cushman Wakefield position performs unexpectedly, Greentown Management 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 Greentown Management will offset losses from the drop in Greentown Management's long position.| Cushman Wakefield vs. CBRE Group Class | Cushman Wakefield vs. Newmark Group | Cushman Wakefield vs. Colliers International Group | Cushman Wakefield vs. Marcus Millichap |
| Greentown Management vs. Church Dwight | Greentown Management vs. Newell Brands | Greentown Management vs. Borr Drilling | Greentown Management vs. World Houseware Limited |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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