Correlation Between Re Max and Colliers International
Can any of the company-specific risk be diversified away by investing in both Re Max 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 Re Max and Colliers International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Re Max Holding and Colliers International Group, you can compare the effects of market volatilities on Re Max 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 Re Max with a short position of Colliers International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Re Max and Colliers International.
Diversification Opportunities for Re Max and Colliers International
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between RMAX and Colliers is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Re Max Holding and Colliers International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colliers International and Re Max 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 Re Max Holding 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 Re Max i.e., Re Max and Colliers International go up and down completely randomly.
Pair Corralation between Re Max and Colliers International
Given the investment horizon of 90 days Re Max Holding is expected to generate 2.49 times more return on investment than Colliers International. However, Re Max is 2.49 times more volatile than Colliers International Group. It trades about 0.11 of its potential returns per unit of risk. Colliers International Group is currently generating about -0.03 per unit of risk. If you would invest 1,234 in Re Max Holding on August 29, 2024 and sell it today you would earn a total of 114.00 from holding Re Max Holding or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Re Max Holding vs. Colliers International Group
Performance |
| Timeline |
| Re Max Holding |
| Colliers International |
Re Max and Colliers International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Re Max and Colliers International
The main advantage of trading using opposite Re Max and Colliers International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Re Max 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.| Re Max vs. Marcus Millichap | Re Max vs. Frp Holdings Ord | Re Max vs. Maui Land Pineapple | Re Max vs. Transcontinental Realty Investors |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |