Correlation Between EXp World and Colliers International
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
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EXp and Colliers is 0.48. 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 1.08 times less return on investment than Colliers International. In addition to that, EXp World is 1.88 times more volatile than Colliers International Group. It trades about 0.08 of its total potential returns per unit of risk. Colliers International Group is currently generating about 0.16 per unit of volatility. If you would invest 11,142 in Colliers International Group on September 1, 2024 and sell it today you would earn a total of 4,221 from holding Colliers International Group or generate 37.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
eXp World Holdings vs. Colliers International Group
Performance |
| Timeline |
| eXp World Holdings |
| Colliers International |
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.| EXp World vs. Re Max Holding | EXp World vs. Fathom Holdings | EXp World vs. Anywhere Real Estate | EXp World vs. RMR Group |
| Colliers International vs. Frp Holdings Ord | Colliers International vs. Marcus Millichap | Colliers International vs. Maui Land Pineapple | Colliers International vs. Jones Lang LaSalle |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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