Correlation Between Cushman Wakefield and Newmark
Can any of the company-specific risk be diversified away by investing in both Cushman Wakefield 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 Cushman Wakefield and Newmark 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 Newmark Group, you can compare the effects of market volatilities on Cushman Wakefield 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 Cushman Wakefield with a short position of Newmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cushman Wakefield and Newmark.
Diversification Opportunities for Cushman Wakefield and Newmark
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cushman and Newmark is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cushman Wakefield plc and Newmark Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmark Group 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 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 Cushman Wakefield i.e., Cushman Wakefield and Newmark go up and down completely randomly.
Pair Corralation between Cushman Wakefield and Newmark
Considering the 90-day investment horizon Cushman Wakefield plc is expected to generate 2.25 times more return on investment than Newmark. However, Cushman Wakefield is 2.25 times more volatile than Newmark Group. It trades about 0.15 of its potential returns per unit of risk. Newmark Group is currently generating about 0.09 per unit of risk. If you would invest 1,359 in Cushman Wakefield plc on August 28, 2024 and sell it today you would earn a total of 158.00 from holding Cushman Wakefield plc or generate 11.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cushman Wakefield plc vs. Newmark Group
Performance |
| Timeline |
| Cushman Wakefield plc |
| Newmark Group |
Cushman Wakefield and Newmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cushman Wakefield and Newmark
The main advantage of trading using opposite Cushman Wakefield and Newmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cushman Wakefield 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.| Cushman Wakefield vs. Investcorp Credit Management | Cushman Wakefield vs. Medalist Diversified Reit | Cushman Wakefield vs. Aquagold International | Cushman Wakefield vs. Morningstar Unconstrained Allocation |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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