Correlation Between Cushman Wakefield and Re Max
Can any of the company-specific risk be diversified away by investing in both Cushman Wakefield and Re Max 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 Re Max 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 Re Max Holding, you can compare the effects of market volatilities on Cushman Wakefield and Re Max 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 Re Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cushman Wakefield and Re Max.
Diversification Opportunities for Cushman Wakefield and Re Max
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cushman and RMAX is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cushman Wakefield plc and Re Max Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Re Max Holding 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 Re Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Re Max Holding has no effect on the direction of Cushman Wakefield i.e., Cushman Wakefield and Re Max go up and down completely randomly.
Pair Corralation between Cushman Wakefield and Re Max
Considering the 90-day investment horizon Cushman Wakefield plc is expected to generate 0.77 times more return on investment than Re Max. However, Cushman Wakefield plc is 1.3 times less risky than Re Max. It trades about 0.07 of its potential returns per unit of risk. Re Max Holding is currently generating about -0.01 per unit of risk. If you would invest 830.00 in Cushman Wakefield plc on August 27, 2024 and sell it today you would earn a total of 614.00 from holding Cushman Wakefield plc or generate 73.98% 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. Re Max Holding
Performance |
| Timeline |
| Cushman Wakefield plc |
| Re Max Holding |
Cushman Wakefield and Re Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cushman Wakefield and Re Max
The main advantage of trading using opposite Cushman Wakefield and Re Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cushman Wakefield position performs unexpectedly, Re Max 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 Re Max will offset losses from the drop in Re Max'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 |
| Re Max vs. Investcorp Credit Management | Re Max vs. Medalist Diversified Reit | Re Max vs. Aquagold International | Re Max vs. Morningstar Unconstrained Allocation |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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