Correlation Between J W and Colliers International
Can any of the company-specific risk be diversified away by investing in both J W 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 J W and Colliers International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J W Mays and Colliers International Group, you can compare the effects of market volatilities on J W 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 J W with a short position of Colliers International. Check out your portfolio center. Please also check ongoing floating volatility patterns of J W and Colliers International.
Diversification Opportunities for J W and Colliers International
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between MAYS and Colliers is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding J W Mays and Colliers International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colliers International and J W 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 J W Mays 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 J W i.e., J W and Colliers International go up and down completely randomly.
Pair Corralation between J W and Colliers International
Given the investment horizon of 90 days J W Mays is expected to under-perform the Colliers International. But the stock apears to be less risky and, when comparing its historical volatility, J W Mays is 1.67 times less risky than Colliers International. The stock trades about -0.38 of its potential returns per unit of risk. The Colliers International Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 15,371 in Colliers International Group on August 28, 2024 and sell it today you would earn a total of 46.00 from holding Colliers International Group or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
J W Mays vs. Colliers International Group
Performance |
| Timeline |
| J W Mays |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Colliers International |
J W and Colliers International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J W and Colliers International
The main advantage of trading using opposite J W and Colliers International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J W 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.| J W vs. Investcorp Credit Management | J W vs. Medalist Diversified Reit | J W vs. Aquagold International | J W vs. Morningstar Unconstrained Allocation |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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