Correlation Between EXp World and Colliers International

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Can any of the company-specific risk be diversified away by investing in both EXp World and Colliers International 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 EXp World and Colliers International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eXp World Holdings and Colliers International Group, you can compare the effects of market volatilities on EXp World and Colliers International 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 EXp World with a short position of Colliers International. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXp World and Colliers International.

Diversification Opportunities for EXp World and Colliers International

0.77
  Correlation Coefficient

Poor diversification

The 3 months correlation between EXp and Colliers is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding eXp World Holdings and Colliers International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colliers International and EXp World 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 eXp World Holdings are associated (or correlated) with Colliers International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Colliers International has no effect on the direction of EXp World i.e., EXp World and Colliers International go up and down completely randomly.

Pair Corralation between EXp World and Colliers International

Given the investment horizon of 90 days EXp World is expected to generate 1.26 times less return on investment than Colliers International. In addition to that, EXp World is 1.89 times more volatile than Colliers International Group. It trades about 0.01 of its total potential returns per unit of risk. Colliers International Group is currently generating about 0.02 per unit of volatility. If you would invest  14,058  in Colliers International Group on November 2, 2024 and sell it today you would earn a total of  261.00  from holding Colliers International Group or generate 1.86% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

eXp World Holdings  vs.  Colliers International Group

 Performance 
       Timeline  
eXp World Holdings 

Risk-Adjusted Performance

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Over the last 90 days eXp World Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in March 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
Colliers International 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Colliers International Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's technical and fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

EXp World and Colliers International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with EXp World and Colliers International

The main advantage of trading using opposite EXp World and Colliers International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXp World position performs unexpectedly, Colliers International 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 Colliers International will offset losses from the drop in Colliers International's long position.
The idea behind eXp World Holdings and Colliers International Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Transaction History module to view history of all your transactions and understand their impact on performance.

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