Correlation Between Pender Growth and Colliers International
Can any of the company-specific risk be diversified away by investing in both Pender Growth 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 Pender Growth and Colliers International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pender Growth and Colliers International Group, you can compare the effects of market volatilities on Pender Growth 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 Pender Growth with a short position of Colliers International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pender Growth and Colliers International.
Diversification Opportunities for Pender Growth and Colliers International
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pender and Colliers is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Pender Growth and Colliers International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colliers International and Pender Growth 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 Pender Growth 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 Pender Growth i.e., Pender Growth and Colliers International go up and down completely randomly.
Pair Corralation between Pender Growth and Colliers International
Assuming the 90 days horizon Pender Growth is expected to generate 1.43 times less return on investment than Colliers International. But when comparing it to its historical volatility, Pender Growth is 1.33 times less risky than Colliers International. It trades about 0.09 of its potential returns per unit of risk. Colliers International Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 20,173 in Colliers International Group on September 3, 2024 and sell it today you would earn a total of 1,292 from holding Colliers International Group or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Pender Growth vs. Colliers International Group
Performance |
| Timeline |
| Pender Growth |
| Colliers International |
Pender Growth and Colliers International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pender Growth and Colliers International
The main advantage of trading using opposite Pender Growth and Colliers International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pender Growth 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.| Pender Growth vs. Colliers International Group | Pender Growth vs. Altus Group Limited | Pender Growth vs. Harvest Global REIT | Pender Growth vs. International Zeolite Corp |
| Colliers International vs. FirstService Corp | Colliers International vs. Altus Group Limited | Colliers International vs. Ritchie Bros Auctioneers | Colliers International vs. Winpak |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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