Correlation Between WeWork and Colliers International
Can any of the company-specific risk be diversified away by investing in both WeWork 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 WeWork and Colliers International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WeWork Inc and Colliers International Group, you can compare the effects of market volatilities on WeWork 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 WeWork with a short position of Colliers International. Check out your portfolio center. Please also check ongoing floating volatility patterns of WeWork and Colliers International.
Diversification Opportunities for WeWork and Colliers International
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WeWork and Colliers is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding WeWork Inc and Colliers International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colliers International and WeWork 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 WeWork Inc 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 WeWork i.e., WeWork and Colliers International go up and down completely randomly.
Pair Corralation between WeWork and Colliers International
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 Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
WeWork Inc vs. Colliers International Group
Performance |
| Timeline |
| WeWork Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Colliers International |
WeWork and Colliers International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WeWork and Colliers International
The main advantage of trading using opposite WeWork and Colliers International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WeWork 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 WeWork Inc 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.| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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